This is more of a consumer oriented forum. Your questions are very specific to business license control through the admin portal. So you should ask the question in the business version of the forum:
Yes, deactivating the 365 license granted to a specific user should be nearly instant. It may take some time to filter through the system.
When that user logs in, they will not have access to full function Office. The installation on the computer will go into "limited function mode". They can read and print files, but not edit or create new ones.
If someone else with a 365 license assigned to their ID logs in, they should have immediate access to 365.
Here are some links about managing 365 that may help you:
2015 12 07- Getting The Most Out Of Office 365 (At Work) – Introduction
https://www.petri.com/tag/office-365 - Index page for Blog, including the “Getting the Most Out oF Office 365” series
https://www.petri.com/getting-office365-work-introduction
Posted on December 7, 2015 by Joseph Finney in Office, Office 365 with 2 Comments
Get started with Office 365 for Business - Learn
https://support.office.com/en-us/article/Get-started-with-Office-365-for-Business-d6466f0d-5d13-464a-adcb-00906ae87029
Here are some additional resources to help you get started with Office 365.
See Also
Learning Center Home
Set up Office 365 for business - Admin Help
What Office 365 product or license do I have?
Office 365 Learning Center Home
Admin- What Office 365 business product or license do I have?
https://support.office.com/en-us/article/What-Office-365-business-product-or-license-do-I-have-f8ab5e25-bf3f-4a47-b264-174b1ee925fd?ui=en-US&rs=en-US&ad=US
Admin- Assign or unassign licenses for Office 365 for business Users
https://support.office.com/en-us/article/Assign-or-unassign-licenses-for-Office-365-for-business-997596b5-4173-4627-b915-36abac6786dc
Learn- MS Cloud Roadshow - Free recordings
https://microsoftcloudroadshow.com/cities - home page
https://mva.microsoft.com/colleges/Cloud-Roadshow - MS Virtual Academy Home page for free session recordings
https://technet.microsoft.com/en-us/virtuallabs/bb467605.aspx - the Roadshow labs are here
Free recordings of Roadshow sessions
We’re bringing top engineers from Redmond to cities around the world. They’ll share expert tips and techniques, with over 80 technical training sessions covering:
Productivity |
Security |
Networking |
Big data |
Storage |
Unified communications |
Identity |
Web |
Mobile |
Collaboration |
Hybrid Cloud |
Containers |
Devops |
Open source |
Management |
Internet of things |
|
|
I am happy to announce that we just landed (66) sessions
on their own
Microsoft Cloud Roadshow landing page that are open to everyone. These are sessions delivered by the technical product managers and experts that you engage with every day on the
Office 365 Network.
Add your users and domain to Office 365 – Access Company Email in 365
https://support.office.com/en-us/article/Add-your-users-and-domain-to-Office-365-6383f56d-3d09-4dcb-9b41-b5f5a5efd611
Applies To: Office 365 Admin
When you're ready to use your domain (like contoso.com) with your email (like *** Email address is removed for privacy ***), you follow the steps in the Office 365 setup wizard to add your domain and get your services set up.
Training for admins - learn
https://support.office.com/en-us/article/Set-up-Office-365-for-business-6a3a29a0-e616-4713-99d1-15eda62d04fa
Here's how to set up your
Office 365 Business Premium subscription: set up email with your business name, download and install Office on your PC or Mac, and set up Office apps on your phones and tablets.
The Office 365 setup wizard will guide you through adding users and your domain.
Log in and launch the wizard now
Office 365 User Training - learn
https://support.office.com/en-us/article/Office-365-training-396b8d9e-e118-42d0-8a0d-87d1f2f055fb
Office Training Center
> Office 365 Training
Tip Looking for training for
Outlook,
Word,
Excel,
PowerPoint,
OneNote, and other
Office apps?
Visit the Office Training Center
Get started with Office 365 for business
Training for Users - learn
Office 365 for business training -
https://support.office.com/en-us/article/Office-365-for-business-training-e990f8ff-56d7-450e-ad9f-74ae8718ef09
How to sign in to Office 365 for business
http://portal.office.com-
https://support.office.com/en-us/article/How-to-sign-in-to-Office-365-for-business-5e41c191-3d94-427d-ac7a-1fa715174bb8
Download and install Office using Office 365 for business on your PC -
https://support.office.com/en-us/article/Download-and-install-Office-using-Office-365-for-business-on-your-PC-72977511-dfd1-4d8b-856f-405cfb76839c
Office 365 install and setup - Help - https://support.office.com/en-us/article/Office-365-install-and-setup-Help-afb38ee0-1679-4548-9e68-7730cb36991d
MS Virtual Academy - Office 365 for End Users Courses -
https://mva.microsoft.com/product-training/office_365 (Also check for MVA categories)
FAQ- Office 365 for Business
https://products.office.com/en-us/business/microsoft-office-365-frequently-asked-questions