diff --git a/Marco.Pms.Services/Controllers/EmployeeController.cs b/Marco.Pms.Services/Controllers/EmployeeController.cs
index cdc28ed..8093471 100644
--- a/Marco.Pms.Services/Controllers/EmployeeController.cs
+++ b/Marco.Pms.Services/Controllers/EmployeeController.cs
@@ -9,6 +9,7 @@ using Marco.Pms.Model.Projects;
 using Marco.Pms.Model.Utilities;
 using Marco.Pms.Model.ViewModels.Activities;
 using Marco.Pms.Model.ViewModels.Employee;
+using Marco.Pms.Services.Helpers;
 using Marco.Pms.Services.Hubs;
 using Marco.Pms.Services.Service;
 using Marco.Pms.Services.Service.ServiceInterfaces;
@@ -36,6 +37,7 @@ namespace MarcoBMS.Services.Controllers
         private readonly IEmailSender _emailSender;
         private readonly EmployeeHelper _employeeHelper;
         private readonly UserHelper _userHelper;
+        private readonly GeneralHelper _generalHelper;
         private readonly IConfiguration _configuration;
         private readonly ILoggingService _logger;
         private readonly IHubContext<MarcoHub> _signalR;
@@ -47,13 +49,14 @@ namespace MarcoBMS.Services.Controllers
 
         public EmployeeController(UserManager<ApplicationUser> userManager, IEmailSender emailSender,
             ApplicationDbContext context, EmployeeHelper employeeHelper, UserHelper userHelper, IConfiguration configuration, ILoggingService logger,
-            IHubContext<MarcoHub> signalR, PermissionServices permission, IProjectServices projectServices, IMapper mapper)
+            IHubContext<MarcoHub> signalR, PermissionServices permission, IProjectServices projectServices, IMapper mapper, GeneralHelper generalHelper)
         {
             _context = context;
             _userManager = userManager;
             _emailSender = emailSender;
             _employeeHelper = employeeHelper;
             _userHelper = userHelper;
+            _generalHelper = generalHelper;
             _configuration = configuration;
             _logger = logger;
             _signalR = signalR;
@@ -191,6 +194,7 @@ namespace MarcoBMS.Services.Controllers
             var response = await employeeQuery.Take(10).Select(e => _mapper.Map<BasicEmployeeVM>(e)).ToListAsync();
             return Ok(ApiResponse<object>.SuccessResponse(response, $"{response.Count} records of employees fetched successfully", 200));
         }
+
         [HttpGet]
         [Route("search/{name}/{projectid?}")]
         public async Task<IActionResult> SearchEmployee(string name, Guid? projectid)
@@ -233,11 +237,6 @@ namespace MarcoBMS.Services.Controllers
             return _userHelper.GetTenantId();
         }
 
-        //[HttpPost("manage/quick")]
-        //public async Task<IActionResult> CreateQuickUser([FromBody] CreateQuickUserDto model)
-        //{
-        //    return Ok("Pending implementation");
-        //}
 
         [HttpPost("manage")]
         public async Task<IActionResult> CreateUser([FromBody] CreateUserDto model)
@@ -294,7 +293,12 @@ namespace MarcoBMS.Services.Controllers
                         TenantId = tenantId
 
                     };
-
+                    var isSeatsAvaiable = await _generalHelper.CheckSeatsRemaningAsync(tenantId);
+                    if (!isSeatsAvaiable)
+                    {
+                        _logger.LogWarning("Maximum number of users reached for Tenant {TenantId}", tenantId);
+                        return BadRequest(ApiResponse<object>.ErrorResponse("Maximum number of users reached. Cannot add new user", "Maximum number of users reached. Cannot add new user", 400));
+                    }
                     // Create Identity User
                     var result = await _userManager.CreateAsync(user, "User@123");
                     if (!result.Succeeded)
diff --git a/Marco.Pms.Services/Helpers/GeneralHelper.cs b/Marco.Pms.Services/Helpers/GeneralHelper.cs
index 93f256f..45cdb13 100644
--- a/Marco.Pms.Services/Helpers/GeneralHelper.cs
+++ b/Marco.Pms.Services/Helpers/GeneralHelper.cs
@@ -296,5 +296,80 @@ namespace Marco.Pms.Services.Helpers
             }
         }
 
+        /// <summary>
+        /// Checks whether the tenant still has available seats (MaxUsers not exceeded).
+        /// </summary>
+        /// <param name="tenantId">The ID of the tenant to check.</param>
+        /// <returns>True if seats are available; otherwise false.</returns>
+        public async Task<bool> CheckSeatsRemainingAsync(Guid tenantId)
+        {
+            _logger.LogInfo("Checking seats remaining for TenantId: {TenantId}", tenantId);
+
+            try
+            {
+                // Run both queries concurrently
+                var totalSeatsTask = GetMaxSeatsAsync(tenantId);
+                var totalSeatsTakenTask = GetActiveEmployeesCountAsync(tenantId);
+
+                await Task.WhenAll(totalSeatsTask, totalSeatsTakenTask);
+
+                var totalSeats = await totalSeatsTask;
+                var totalSeatsTaken = await totalSeatsTakenTask;
+
+                _logger.LogInfo(
+                    "TenantId: {TenantId} | TotalSeats: {TotalSeats} | SeatsTaken: {SeatsTaken}",
+                    tenantId, totalSeats, totalSeatsTaken);
+
+                bool seatsAvailable = totalSeats >= totalSeatsTaken;
+
+                _logger.LogDebug("TenantId: {TenantId} | Seats Available: {SeatsAvailable}",
+                    tenantId, seatsAvailable);
+
+                return seatsAvailable;
+            }
+            catch (Exception ex)
+            {
+                _logger.LogError(ex, "Error checking seats for TenantId: {TenantId}", tenantId);
+                throw;
+            }
+        }
+
+        /// <summary>
+        /// Retrieves the maximum number of allowed seats (MaxUsers) for a tenant.
+        /// </summary>
+        private async Task<double> GetMaxSeatsAsync(Guid tenantId)
+        {
+            _logger.LogDebug("Fetching maximum seats for TenantId: {TenantId}", tenantId);
+
+            await using var dbContext = await _dbContextFactory.CreateDbContextAsync();
+
+            var maxSeats = await dbContext.TenantSubscriptions
+                .Where(ts => ts.TenantId == tenantId && !ts.IsCancelled)
+                .Select(ts => ts.MaxUsers)
+                .FirstOrDefaultAsync();
+
+            _logger.LogDebug("TenantId: {TenantId} | MaxSeats: {MaxSeats}", tenantId, maxSeats);
+
+            return maxSeats;
+        }
+
+        /// <summary>
+        /// Counts the number of active employees for a tenant.
+        /// </summary>
+        private async Task<int> GetActiveEmployeesCountAsync(Guid tenantId)
+        {
+            _logger.LogDebug("Counting active employees for TenantId: {TenantId}", tenantId);
+
+            await using var dbContext = await _dbContextFactory.CreateDbContextAsync();
+
+            var activeEmployees = await dbContext.Employees
+                .Where(e => e.TenantId == tenantId && e.IsActive)
+                .CountAsync();
+
+            _logger.LogDebug("TenantId: {TenantId} | ActiveEmployees: {ActiveEmployees}", tenantId, activeEmployees);
+
+            return activeEmployees;
+        }
+
     }
 }