1 files changed, 6 insertions, 2 deletions
diff --git a/app/policies/group_policy.rb b/app/policies/group_policy.rb
index c9cb730c4e9..520710b757d 100644
--- a/app/policies/group_policy.rb
+++ b/app/policies/group_policy.rb
@@ -22,7 +22,7 @@ class GroupPolicy < BasePolicy
   condition(:can_change_parent_share_with_group_lock) { can?(:change_share_with_group_lock, @subject.parent) }
 
   condition(:has_projects) do
-    GroupProjectsFinder.new(group: @subject, current_user: @user).execute.any?
+    GroupProjectsFinder.new(group: @subject, current_user: @user, options: { include_subgroups: true }).execute.any?
   end
 
   with_options scope: :subject, score: 0
@@ -43,7 +43,11 @@ class GroupPolicy < BasePolicy
   end
 
   rule { admin }             .enable :read_group
-  rule { has_projects }      .enable :read_group
+
+  rule { has_projects }.policy do
+    enable :read_group
+    enable :read_label
+  end
 
   rule { has_access }.enable :read_namespace