diff --git a/erpnext/setup/doctype/employee/employee.py b/erpnext/setup/doctype/employee/employee.py
index 566392c327ce..1ae709e6f7e1 100755
--- a/erpnext/setup/doctype/employee/employee.py
+++ b/erpnext/setup/doctype/employee/employee.py
@@ -83,6 +83,8 @@ def on_update(self):
 
 	def update_user_permissions(self):
 		if not self.create_user_permission:
+			remove_user_permission("Employee", self.name, self.user_id)
+			remove_user_permission("Company", self.company, self.user_id)
 			return
 		if not has_permission("User Permission", ptype="write", raise_exception=False):
 			return