diff --git a/platform-dao/src/main/java/ua/com/fielden/platform/security/user/UserDao.java b/platform-dao/src/main/java/ua/com/fielden/platform/security/user/UserDao.java
index bf06897e54..aee241ad22 100644
--- a/platform-dao/src/main/java/ua/com/fielden/platform/security/user/UserDao.java
+++ b/platform-dao/src/main/java/ua/com/fielden/platform/security/user/UserDao.java
@@ -119,9 +119,10 @@ protected User ordinarySave(final User user) {
             coUserSecrete.batchDelete(listOf(user.getId()));
         }
 
-        //Remove all invisibility menu items for non base user which have changed it's based on user property
         final List<String> menuItemsToSave = new ArrayList<>();
-        if (user.isPersisted() && !user.isBase() && user.getProperty("basedOnUser").isDirty()) {
+        if (!user.isBase() && user.isActive() &&
+                (!user.isPersisted() ||
+                (user.isPersisted() && (user.getProperty("basedOnUser").isDirty() || user.getProperty(ACTIVE).isDirty())))) {
             final IWebMenuItemInvisibility coMenuItemInvisibility = co(WebMenuItemInvisibility.class);
             coMenuItemInvisibility.batchDelete(select(WebMenuItemInvisibility.class).where().prop("owner").eq().val(user).model());
             menuItemsToSave.addAll(invisibleMenuItems(user));
diff --git a/platform-dao/src/test/java/ua/com/fielden/platform/menu/MenuProducerTest.java b/platform-dao/src/test/java/ua/com/fielden/platform/menu/MenuProducerTest.java
index 1f23af5610..e554d7543e 100644
--- a/platform-dao/src/test/java/ua/com/fielden/platform/menu/MenuProducerTest.java
+++ b/platform-dao/src/test/java/ua/com/fielden/platform/menu/MenuProducerTest.java
@@ -243,12 +243,13 @@ private void makeInvisibleMenuItemsForUser(final Set<String> menuItems, final St
     }
 
     @Test
-    public void menu_item_visisble_for_non_base_user_should_become_invisible_after_changing_base_user_with_invisible_menu_item() {
+    public void rebased_new_activated_non_base_users_should_not_see_invisible_menu_item() {
         final IUserProvider up = getInstance(IUserProvider.class);
         final IWebMenuItemInvisibility mii = co(WebMenuItemInvisibility.class);
         final IUser coUser = co(User.class);
 
-        up.setUser(coUser.findByKey("BUSER_2"));
+        final User baseUser = coUser.findByKey("BUSER_2");
+        up.setUser(baseUser);
         save(new_(MenuSaveAction.class)
                 .setInvisibleMenuItems(new HashSet<>(Arrays.asList(
                         "module2/module2group1/module2group1item1"))));
@@ -259,8 +260,16 @@ public void menu_item_visisble_for_non_base_user_should_become_invisible_after_c
 
         up.setUser(coUser.findByKey(UNIT_TEST_USER));
         final IUser co$User = co$(User.class);
-        co$User.save(co$User.findByKeyAndFetch(coUser.getFetchProvider().fetchModel(),"USER_1").setBasedOnUser(coUser.findByKey("BUSER_2")));
+        save(co$User.findByKeyAndFetch(coUser.getFetchProvider().fetchModel(),"USER_1").setBasedOnUser(baseUser));
+        save(new_(User.class, "USER_6").setBase(false).setActive(true).setEmail("user6@mail").setBasedOnUser(baseUser));
+        save(co$User.findByKeyAndFetch(coUser.getFetchProvider().fetchModel(),"USER_5").setActive(true));
 
+        testMenuInvisibilityForUser("USER_1", up, mii);
+        testMenuInvisibilityForUser("USER_6", up, mii);
+        testMenuInvisibilityForUser("USER_5", up, mii);
+    }
+
+    private void testMenuInvisibilityForUser(final String userName, final IUserProvider up, final IWebMenuItemInvisibility mii) {
         up.setUser(co(User.class).findByKey("USER_1"));
         final MenuProducer menuProducer = new MenuProducer(menuRetriever, mii, up, getInstance(ICompanionObjectFinder.class), getInstance(EntityFactory.class));
         final CentreContext context = new CentreContext();
@@ -275,20 +284,29 @@ public void menu_item_visisble_for_non_base_user_should_become_invisible_after_c
     }
 
     @Test
-    public void new_non_base_user_should_see_menu_item_that_is_semi_visible() {
+    public void rebased_new_activated_non_base_user_should_see_menu_item_that_is_semi_visible() {
         final IUserProvider up = getInstance(IUserProvider.class);
         final IWebMenuItemInvisibility mii = co(WebMenuItemInvisibility.class);
         final IUser coUser = co(User.class);
 
-        up.setUser(coUser.findByKey("BUSER_2"));
+        final User baseUser = coUser.findByKey("BUSER_2");
+        up.setUser(baseUser);
         makeInvisibleMenuItemsForUser(new HashSet<>(Arrays.asList(
                 "module2/module2group1/module2group1item1")), "USER_3");
 
         up.setUser(coUser.findByKey(UNIT_TEST_USER));
         final IUser co$User = co$(User.class);
-        co$User.save(co$User.findByKeyAndFetch(coUser.getFetchProvider().fetchModel(),"USER_1").setBasedOnUser(coUser.findByKey("BUSER_2")));
+        save(co$User.findByKeyAndFetch(coUser.getFetchProvider().fetchModel(),"USER_1").setBasedOnUser(baseUser));
+        save(new_(User.class, "USER_6").setBase(false).setActive(true).setEmail("user6@mail").setBasedOnUser(baseUser));
+        save(co$User.findByKeyAndFetch(coUser.getFetchProvider().fetchModel(),"USER_5").setActive(true));
 
-        up.setUser(co(User.class).findByKey("USER_1"));
+        testMenuVisibilityForUser("USER_1", up, mii);
+        testMenuVisibilityForUser("USER_6", up, mii);
+        testMenuVisibilityForUser("USER_5", up, mii);
+    }
+
+    private void testMenuVisibilityForUser(final String userName, final IUserProvider up, final IWebMenuItemInvisibility mii) {
+        up.setUser(co(User.class).findByKey(userName));
         final MenuProducer menuProducer = new MenuProducer(menuRetriever, mii, up, getInstance(ICompanionObjectFinder.class), getInstance(EntityFactory.class));
         final CentreContext context = new CentreContext();
         context.setChosenProperty("desktop");
@@ -312,5 +330,6 @@ protected void populateDomain() {
         final User user2 = save(new_(User.class, "BUSER_2").setBase(true).setActive(true).setEmail("buser2@mail"));
         save(new_(User.class, "USER_3").setBase(false).setActive(true).setEmail("user3@mail").setBasedOnUser(user2));
         save(new_(User.class, "USER_4").setBase(false).setActive(true).setEmail("user4@mail").setBasedOnUser(user2));
+        save(new_(User.class, "USER_5").setBase(false).setActive(false).setEmail("user5@mail").setBasedOnUser(user2));
     }
 }