diff --git a/server/src/services/users.service.ts b/server/src/services/users.service.ts
index 88a2046495..a437c8a905 100644
--- a/server/src/services/users.service.ts
+++ b/server/src/services/users.service.ts
@@ -155,10 +155,11 @@ export class UsersService {
     // removing keys with undefined values
     cleanObject(updatableParams);
 
-    await this.updateUser(userId, updatableParams);
-    const user = await this.findOne(userId);
+    let user: User;
 
     const performUpdateInTransaction = async (manager) => {
+      await manager.update(User, userId, updatableParams);
+      user = await manager.findOne(User, { where: { id: userId } });
       await this.removeUserGroupPermissionsIfExists(manager, user, removeGroups, organizationId);
       await this.addUserGroupPermissions(manager, user, addGroups, organizationId);
     };
diff --git a/server/test/controllers/organization_users.e2e-spec.ts b/server/test/controllers/organization_users.e2e-spec.ts
index 46ade25d99..66728fbb09 100644
--- a/server/test/controllers/organization_users.e2e-spec.ts
+++ b/server/test/controllers/organization_users.e2e-spec.ts
@@ -188,7 +188,7 @@ describe('organization users controller', () => {
       expect(viewerUserData.user.password).not.toBe('old-password');
     });
 
-    it('should allow unarchive if user is already archived', async () => {
+    it('should not allow unarchive if user status is not archived', async () => {
       const adminUserData = await createUser(app, {
         email: 'admin@tooljet.io',
         status: 'active',
@@ -205,11 +205,34 @@ describe('organization users controller', () => {
       await request(app.getHttpServer())
         .post(`/api/organization_users/${developerUserData.orgUser.id}/unarchive/`)
         .set('Authorization', authHeaderForUser(adminUserData.user))
-        .expect(201);
+        .expect(400);
 
       await developerUserData.orgUser.reload();
       expect(developerUserData.orgUser.status).toBe('active');
     });
+
+    it('should not allow unarchive if user status is not archived', async () => {
+      const adminUserData = await createUser(app, {
+        email: 'admin@tooljet.io',
+        status: 'active',
+        groups: ['admin', 'all_users'],
+      });
+      const organization = adminUserData.organization;
+      const developerUserData = await createUser(app, {
+        email: 'developer@tooljet.io',
+        status: 'invited',
+        groups: ['developer', 'all_users'],
+        organization,
+      });
+
+      await request(app.getHttpServer())
+        .post(`/api/organization_users/${developerUserData.orgUser.id}/unarchive/`)
+        .set('Authorization', authHeaderForUser(adminUserData.user))
+        .expect(400);
+
+      await developerUserData.orgUser.reload();
+      expect(developerUserData.orgUser.status).toBe('invited');
+    });
   });
 
   afterAll(async () => {