diff --git a/apps/encryption/lib/AppInfo/Application.php b/apps/encryption/lib/AppInfo/Application.php
index c047489cec3..dd9d173c8eb 100644
--- a/apps/encryption/lib/AppInfo/Application.php
+++ b/apps/encryption/lib/AppInfo/Application.php
@@ -196,7 +196,8 @@ class Application extends \OCP\AppFramework\App {
 				$c->getAppName(),
 				$server->getRequest(),
 				$server->getL10N($c->getAppName()),
-				$c->query('Session')
+				$c->query('Session'),
+				$server->getEncryptionManager()
 			);
 		});
 
diff --git a/apps/encryption/lib/Controller/StatusController.php b/apps/encryption/lib/Controller/StatusController.php
index 0776a84ceb4..9ec9fd1234b 100644
--- a/apps/encryption/lib/Controller/StatusController.php
+++ b/apps/encryption/lib/Controller/StatusController.php
@@ -28,6 +28,7 @@ namespace OCA\Encryption\Controller;
 use OCA\Encryption\Session;
 use OCP\AppFramework\Controller;
 use OCP\AppFramework\Http\DataResponse;
+use OCP\Encryption\IManager;
 use OCP\IL10N;
 use OCP\IRequest;
 
@@ -39,20 +40,26 @@ class StatusController extends Controller {
 	/** @var Session */
 	private $session;
 
+	/** @var IManager */
+	private $encryptionManager;
+
 	/**
 	 * @param string $AppName
 	 * @param IRequest $request
 	 * @param IL10N $l10n
 	 * @param Session $session
+	 * @param IManager $encryptionManager
 	 */
 	public function __construct($AppName,
 								IRequest $request,
 								IL10N $l10n,
-								Session $session
+								Session $session,
+								IManager $encryptionManager
 								) {
 		parent::__construct($AppName, $request);
 		$this->l = $l10n;
 		$this->session = $session;
+		$this->encryptionManager = $encryptionManager;
 	}
 
 	/**
@@ -78,9 +85,15 @@ class StatusController extends Controller {
 				break;
 			case Session::NOT_INITIALIZED:
 				$status = 'interactionNeeded';
-				$message = (string)$this->l->t(
-					'Encryption App is enabled, but your keys are not initialized. Please log-out and log-in again.'
-				);
+				if ($this->encryptionManager->isEnabled()) {
+					$message = (string)$this->l->t(
+						'Encryption App is enabled, but your keys are not initialized. Please log-out and log-in again.'
+					);
+				} else {
+					$message = (string)$this->l->t(
+						'Please enable server side encryption in the admin settings in order to use the encryption module.'
+					);
+				}
 				break;
 			case Session::INIT_SUCCESSFUL:
 				$status = 'success';
diff --git a/apps/encryption/templates/settings-admin.php b/apps/encryption/templates/settings-admin.php
index efe9c44ece7..c5f8d9f5536 100644
--- a/apps/encryption/templates/settings-admin.php
+++ b/apps/encryption/templates/settings-admin.php
@@ -7,7 +7,7 @@ style('encryption', 'settings-admin');
 ?>
 <form id="ocDefaultEncryptionModule" class="sub-section">
 	<h3><?php p($l->t("Default encryption module")); ?></h3>
-	<?php if(!$_["initStatus"]): ?>
+	<?php if(!$_["initStatus"] && $_['masterKeyEnabled'] === false): ?>
 		<?php p($l->t("Encryption app is enabled but your keys are not initialized, please log-out and log-in again")); ?>
 	<?php else: ?>
 		<p id="encryptHomeStorageSetting">
diff --git a/apps/encryption/tests/Controller/StatusControllerTest.php b/apps/encryption/tests/Controller/StatusControllerTest.php
index c6c92e2aac2..ee0f7b2661c 100644
--- a/apps/encryption/tests/Controller/StatusControllerTest.php
+++ b/apps/encryption/tests/Controller/StatusControllerTest.php
@@ -27,6 +27,7 @@ namespace OCA\Encryption\Tests\Controller;
 
 use OCA\Encryption\Controller\StatusController;
 use OCA\Encryption\Session;
+use OCP\Encryption\IManager;
 use OCP\IRequest;
 use Test\TestCase;
 
@@ -41,6 +42,9 @@ class StatusControllerTest extends TestCase {
 	/** @var  \OCA\Encryption\Session | \PHPUnit_Framework_MockObject_MockObject */
 	protected $sessionMock;
 
+	/** @var  IManager | \PHPUnit_Framework_MockObject_MockObject */
+	protected $encryptionManagerMock;
+
 	/** @var StatusController */
 	protected $controller;
 
@@ -59,11 +63,13 @@ class StatusControllerTest extends TestCase {
 			->will($this->returnCallback(function($message) {
 				return $message;
 			}));
+		$this->encryptionManagerMock = $this->createMock(IManager::class);
 
 		$this->controller = new StatusController('encryptionTest',
 			$this->requestMock,
 			$this->l10nMock,
-			$this->sessionMock);
+			$this->sessionMock,
+			$this->encryptionManagerMock);
 
 	}