This is for access control. If your company uses Active Directory then when when you remove an employee from your Active Directory his access will be automatically removed.
If your company does not use Active Directory you can create a Microsoft account using your existing email (even gmail works). Or you can create a new @outlook.com account.
If your company does not use Active Directory you can create a Microsoft account using your existing email (even gmail works). Or you can create a new @outlook.com account.