diff --git a/services/web/app/src/Features/Authorization/PermissionsController.js b/services/web/app/src/Features/Authorization/PermissionsController.js
index db7d55dc25..eba0486326 100644
--- a/services/web/app/src/Features/Authorization/PermissionsController.js
+++ b/services/web/app/src/Features/Authorization/PermissionsController.js
@@ -70,10 +70,10 @@ function requirePermission(...requiredCapabilities) {
     }
     try {
       // get the group policy applying to the user
-      const { groupPolicy } =
+      const { groupPolicy, managedUsersEnabled } =
         await ManagedUsersHandler.promises.getEnrollmentForUser(req.user)
-      // if there is no group policy, the user is not managed
-      if (!groupPolicy) {
+
+      if (!managedUsersEnabled) {
         return next()
       }
       // check that the user has all the required capabilities
diff --git a/services/web/app/src/Features/Subscription/ManagedUsersHandler.js b/services/web/app/src/Features/Subscription/ManagedUsersHandler.js
index e07fd7f769..b6015858d5 100644
--- a/services/web/app/src/Features/Subscription/ManagedUsersHandler.js
+++ b/services/web/app/src/Features/Subscription/ManagedUsersHandler.js
@@ -32,12 +32,14 @@ const logger = require('@overleaf/logger')
  */
 async function enableManagedUsers(subscriptionId) {
   const subscription = await Subscription.findById(subscriptionId).exec()
+
   // create a new Group policy with the default settings for managed users
   const policy = ManagedUsersPolicy.getDefaultPolicy()
   const groupPolicy = new GroupPolicy(policy)
   await groupPolicy.save()
   // update the subscription to use the new policy
   subscription.groupPolicy = groupPolicy._id
+  subscription.managedUsersEnabled = true
   await subscription.save()
 
   await _sendEmailToGroupMembers(subscriptionId)
@@ -55,7 +57,6 @@ async function enableManagedUsers(subscriptionId) {
  */
 async function disableManagedUsers(subscriptionId) {
   const subscription = await Subscription.findById(subscriptionId).exec()
-
   for (const userId of subscription.member_ids || []) {
     const user = await UserGetter.promises.getUser(userId, { enrollment: 1 })
     if (
@@ -68,6 +69,7 @@ async function disableManagedUsers(subscriptionId) {
   }
 
   subscription.groupPolicy = undefined
+  subscription.managedUsersEnabled = false
   await subscription.save()
 }
 
@@ -110,6 +112,7 @@ async function getEnrollmentForUser(requestedUser) {
 
   return {
     groupPolicy,
+    managedUsersEnabled: subscription.managedUsersEnabled,
     managedBy: user.enrollment.managedBy,
     isManagedGroupAdmin,
   }
diff --git a/services/web/app/src/Features/Subscription/SubscriptionUpdater.js b/services/web/app/src/Features/Subscription/SubscriptionUpdater.js
index 639f2bbd14..13d72044a2 100644
--- a/services/web/app/src/Features/Subscription/SubscriptionUpdater.js
+++ b/services/web/app/src/Features/Subscription/SubscriptionUpdater.js
@@ -230,7 +230,7 @@ async function updateSubscriptionFromRecurly(
 ) {
   if (recurlySubscription.state === 'expired') {
     const hasManagedUsersFeature =
-      Features.hasFeature('saas') && subscription?.groupPolicy != null
+      Features.hasFeature('saas') && subscription?.managedUsersEnabled
     if (hasManagedUsersFeature) {
       // If a payment lapses and if the group is managed, as a temporary measure we need to
       // make sure that the group continues as-is and no destructive actions are taken.
diff --git a/services/web/app/src/Features/Subscription/TeamInvitesHandler.js b/services/web/app/src/Features/Subscription/TeamInvitesHandler.js
index 078919db5e..ab6c620ea2 100644
--- a/services/web/app/src/Features/Subscription/TeamInvitesHandler.js
+++ b/services/web/app/src/Features/Subscription/TeamInvitesHandler.js
@@ -71,7 +71,7 @@ async function acceptInvite(token, userId) {
 
   await SubscriptionUpdater.promises.addUserToGroup(subscription._id, userId)
 
-  if (subscription.groupPolicy) {
+  if (subscription.managedUsersEnabled) {
     await ManagedUsersHandler.promises.enrollInSubscription(
       userId,
       subscription
@@ -164,12 +164,11 @@ async function _createInvite(subscription, email, inviter) {
   }
 
   try {
-    const managedUsersEnabled = Boolean(subscription.groupPolicy)
     await _sendNotificationToExistingUser(
       subscription,
       email,
       invite,
-      managedUsersEnabled
+      subscription.managedUsersEnabled
     )
   } catch (err) {
     logger.error(
@@ -180,7 +179,7 @@ async function _createInvite(subscription, email, inviter) {
 
   await subscription.save()
 
-  if (subscription.groupPolicy) {
+  if (subscription.managedUsersEnabled) {
     let admin = {}
     try {
       admin = await SubscriptionLocator.promises.getAdminEmailAndName(
diff --git a/services/web/app/src/Features/UserMembership/UserMembershipController.js b/services/web/app/src/Features/UserMembership/UserMembershipController.js
index 4c00a66723..b0fa97838f 100644
--- a/services/web/app/src/Features/UserMembership/UserMembershipController.js
+++ b/services/web/app/src/Features/UserMembership/UserMembershipController.js
@@ -46,7 +46,7 @@ async function manageGroupMembers(req, res, next) {
           groupId: entityPrimaryKey,
           users,
           groupSize: entity.membersLimit,
-          managedUsersActive: entity.groupPolicy != null,
+          managedUsersActive: entity.managedUsersEnabled,
           groupSSOActive: ssoConfig?.enabled,
         })
       }
diff --git a/services/web/app/src/models/Subscription.js b/services/web/app/src/models/Subscription.js
index 510df031d7..51e73ac2a7 100644
--- a/services/web/app/src/models/Subscription.js
+++ b/services/web/app/src/models/Subscription.js
@@ -29,6 +29,7 @@ const SubscriptionSchema = new Schema(
     teamNotice: { type: String },
     planCode: { type: String },
     groupPlan: { type: Boolean, default: false },
+    managedUsersEnabled: { type: Boolean, default: false },
     membersLimit: { type: Number, default: 0 },
     customAccount: Boolean,
     features: {
diff --git a/services/web/test/unit/src/Subscription/SubscriptionUpdaterTests.js b/services/web/test/unit/src/Subscription/SubscriptionUpdaterTests.js
index 2c7d40ba32..d689857fbc 100644
--- a/services/web/test/unit/src/Subscription/SubscriptionUpdaterTests.js
+++ b/services/web/test/unit/src/Subscription/SubscriptionUpdaterTests.js
@@ -279,7 +279,7 @@ describe('SubscriptionUpdater', function () {
 
     it('should not remove the subscription when expired if it has "managedUsers" feature', async function () {
       this.Features.hasFeature.withArgs('saas').returns(true)
-      this.subscription.groupPolicy = { policy: true }
+      this.subscription.managedUsersEnabled = true
 
       this.recurlySubscription.state = 'expired'
       await this.SubscriptionUpdater.promises.updateSubscriptionFromRecurly(
diff --git a/services/web/test/unit/src/UserMembership/UserMembershipControllerTests.js b/services/web/test/unit/src/UserMembership/UserMembershipControllerTests.js
index 69840dc262..87425e0237 100644
--- a/services/web/test/unit/src/UserMembership/UserMembershipControllerTests.js
+++ b/services/web/test/unit/src/UserMembership/UserMembershipControllerTests.js
@@ -121,6 +121,7 @@ describe('UserMembershipController', function () {
     })
 
     it('render group view', async function () {
+      this.subscription.managedUsersEnabled = false
       return await this.UserMembershipController.manageGroupMembers(this.req, {
         render: (viewPath, viewParams) => {
           expect(viewPath).to.equal('user_membership/group-members-react')
@@ -132,7 +133,7 @@ describe('UserMembershipController', function () {
     })
 
     it('render group view with managed users', async function () {
-      this.req.entity.groupPolicy = { somePolicy: true }
+      this.subscription.managedUsersEnabled = true
       return await this.UserMembershipController.manageGroupMembers(this.req, {
         render: (viewPath, viewParams) => {
           expect(viewPath).to.equal('user_membership/group-members-react')
diff --git a/services/web/types/admin/subscription.ts b/services/web/types/admin/subscription.ts
index 9730a99b7b..4d39d92c5a 100644
--- a/services/web/types/admin/subscription.ts
+++ b/services/web/types/admin/subscription.ts
@@ -9,4 +9,5 @@ export type Subscription = {
   groupPlan: boolean
   customAccount: boolean
   ssoConfig: object
+  managedUsersEnabled: boolean
 }