diff --git a/apps/files_encryption/hooks/hooks.php b/apps/files_encryption/hooks/hooks.php
index c1ccb927df582224fe9fa92e94c75b68b7b3ca5f..6e375f99a8e4f31348b55ee52328be6550eeb13a 100644
--- a/apps/files_encryption/hooks/hooks.php
+++ b/apps/files_encryption/hooks/hooks.php
@@ -81,7 +81,7 @@ class Hooks {
 		// Check if first-run file migration has already been performed
 		$ready = false;
 		$migrationStatus = $util->getMigrationStatus();
-		if ($migrationStatus === Util::MIGRATION_OPEN) {
+		if ($migrationStatus === Util::MIGRATION_OPEN && $session !== false) {
 			$ready = $util->beginMigration();
 		} elseif ($migrationStatus === Util::MIGRATION_IN_PROGRESS) {
 			// refuse login as long as the initial encryption is running
@@ -222,10 +222,14 @@ class Hooks {
 				$util = new Util($view, $user);
 				$recoveryPassword = isset($params['recoveryPassword']) ? $params['recoveryPassword'] : null;
 
+				// we generate new keys if...
+				// ...we have a recovery password and the user enabled the recovery key
+				// ...encryption was activated for the first time (no keys exists)
+				// ...the user doesn't have any files
 				if (($util->recoveryEnabledForUser() && $recoveryPassword)
-						|| !$util->userKeysExists()) {
+						|| !$util->userKeysExists()
+						|| !$view->file_exists($user . '/files')) {
 
-					$recoveryPassword = $params['recoveryPassword'];
 					$newUserPassword = $params['password'];
 
 					// make sure that the users home is mounted
diff --git a/apps/files_encryption/tests/hooks.php b/apps/files_encryption/tests/hooks.php
index fcb369c7238eec877bfdc0d0ca996fcd97d1f1d2..437034726183fe3665e8a1d356323a5926987420 100644
--- a/apps/files_encryption/tests/hooks.php
+++ b/apps/files_encryption/tests/hooks.php
@@ -311,4 +311,46 @@ class Test_Encryption_Hooks extends \PHPUnit_Framework_TestCase {
 		$this->rootView->unlink('/' . self::TEST_ENCRYPTION_HOOKS_USER1 . '/files/' . $this->folder);
 	}
 
+	/**
+	 * @brief replacing encryption keys during password change should be allowed
+	 *        until the user logged in for the first time
+	 */
+	public function testSetPassphrase() {
+
+		$view = new \OC\Files\View();
+
+		// set user password for the first time
+		\OCA\Encryption\Hooks::postCreateUser(array('uid' => 'newUser', 'password' => 'newUserPassword'));
+
+		$this->assertTrue($view->file_exists('public-keys/newUser.public.key'));
+		$this->assertTrue($view->file_exists('newUser/files_encryption/newUser.private.key'));
+
+		// check if we are able to decrypt the private key
+		$encryptedKey = \OCA\Encryption\Keymanager::getPrivateKey($view, 'newUser');
+		$privateKey = \OCA\Encryption\Crypt::decryptPrivateKey($encryptedKey, 'newUserPassword');
+		$this->assertTrue(is_string($privateKey));
+
+		// change the password before the user logged-in for the first time,
+		// we can replace the encryption keys
+		\OCA\Encryption\Hooks::setPassphrase(array('uid' => 'newUser', 'password' => 'passwordChanged'));
+
+		$encryptedKey = \OCA\Encryption\Keymanager::getPrivateKey($view, 'newUser');
+		$privateKey = \OCA\Encryption\Crypt::decryptPrivateKey($encryptedKey, 'passwordChanged');
+		$this->assertTrue(is_string($privateKey));
+
+		// now create a files folder to simulate a already used account
+		$view->mkdir('/newUser/files');
+
+		// change the password after the user logged in, now the password should not change
+		\OCA\Encryption\Hooks::setPassphrase(array('uid' => 'newUser', 'password' => 'passwordChanged2'));
+
+		$encryptedKey = \OCA\Encryption\Keymanager::getPrivateKey($view, 'newUser');
+		$privateKey = \OCA\Encryption\Crypt::decryptPrivateKey($encryptedKey, 'passwordChanged2');
+		$this->assertFalse($privateKey);
+
+		$privateKey = \OCA\Encryption\Crypt::decryptPrivateKey($encryptedKey, 'passwordChanged');
+		$this->assertTrue(is_string($privateKey));
+
+	}
+
 }