diff --git a/app/assets/stylesheets/framework/terms.scss b/app/assets/stylesheets/framework/terms.scss
index 0e9bdba034c..c73274540ac 100644
--- a/app/assets/stylesheets/framework/terms.scss
+++ b/app/assets/stylesheets/framework/terms.scss
@@ -33,5 +33,13 @@
     .panel-content {
       padding: 0 $gl-padding;
     }
+
+    .footer-block {
+      margin: 0;
+
+      .btn {
+        margin-left: 5px;
+      }
+    }
   }
 }
diff --git a/app/controllers/users/terms_controller.rb b/app/controllers/users/terms_controller.rb
index 778e388ff5a..32507bdb7b1 100644
--- a/app/controllers/users/terms_controller.rb
+++ b/app/controllers/users/terms_controller.rb
@@ -2,18 +2,55 @@ module Users
   class TermsController < ApplicationController
     before_action :terms
 
-
     layout 'terms'
 
     def index
+      @redirect = redirect_path
+    end
+
+    def accept
+      agreement = Users::RespondToTermsService.new(current_user, viewed_term)
+                    .execute(accepted: true)
+
+      if agreement.persisted?
+        redirect_to redirect_path
+      else
+        flash[:alert] = agreement.errors.full_messages.join(', ')
+        redirect_to terms_path, redirect: redirect_path
+      end
+    end
+
+    def decline
+      agreement = Users::RespondToTermsService.new(current_user, viewed_term)
+                    .execute(accepted: false)
+
+      if agreement.persisted?
+        sign_out(current_user)
+        redirect_to root_path
+      else
+        flash[:alert] = agreement.errors.full_messages.join(', ')
+        redirect_to terms_path, redirect: redirect_path
+      end
     end
 
     private
 
+    def viewed_term
+      @viewed_term ||= ApplicationSetting::Term.find(params[:id])
+    end
+
     def terms
-      unless @terms = Gitlab::CurrentSettings.current_application_settings.latest_terms
-        redirect_to request.referer || root_path
+      unless @term = Gitlab::CurrentSettings.current_application_settings.latest_terms
+        redirect_to redirect_path
       end
     end
+
+    def redirect_path
+      referer = if request.referer && !request.referer.include?(terms_path)
+                  URI(request.referer).path
+                end
+
+      params[:redirect] || referer || root_path
+    end
   end
 end
diff --git a/app/helpers/users_helper.rb b/app/helpers/users_helper.rb
index 517268175e6..e803cd3a8d8 100644
--- a/app/helpers/users_helper.rb
+++ b/app/helpers/users_helper.rb
@@ -38,13 +38,24 @@ module UsersHelper
   end
 
   def get_current_user_menu_items
-    items = [:help, :sign_out]
+    items = []
 
-    if can?(current_user, :read_user, current_user)
+    items << :sign_out if current_user
+
+    # TODO: Remove these conditions when the permissions are prevented in
+    # https://gitlab.com/gitlab-org/gitlab-ce/issues/45849
+    terms_not_enforced = !Gitlab::CurrentSettings
+                                .current_application_settings
+                                .enforce_terms?
+    required_terms_accepted = terms_not_enforced || current_user.terms_accepted?
+
+    items << :help if required_terms_accepted
+
+    if can?(current_user, :read_user, current_user) && required_terms_accepted
       items << :profile
     end
 
-    if can?(current_user, :update_user, current_user)
+    if can?(current_user, :update_user, current_user) && required_terms_accepted
       items << :settings
     end
 
diff --git a/app/models/user.rb b/app/models/user.rb
index 4a602ffbb05..a9cfd39f604 100644
--- a/app/models/user.rb
+++ b/app/models/user.rb
@@ -138,6 +138,8 @@ class User < ActiveRecord::Base
   has_many :custom_attributes, class_name: 'UserCustomAttribute'
   has_many :callouts, class_name: 'UserCallout'
   has_many :uploads, as: :model, dependent: :destroy # rubocop:disable Cop/ActiveRecordDependent
+  has_many :term_agreements
+  belongs_to :accepted_term, class_name: 'ApplicationSetting::Term'
 
   #
   # Validations
@@ -1187,6 +1189,10 @@ class User < ActiveRecord::Base
     max_member_access_for_group_ids([group_id])[group_id]
   end
 
+  def terms_accepted?
+    accepted_term_id.present?
+  end
+
   protected
 
   # override, from Devise::Validatable
diff --git a/app/policies/application_setting/term_policy.rb b/app/policies/application_setting/term_policy.rb
new file mode 100644
index 00000000000..648932ddba9
--- /dev/null
+++ b/app/policies/application_setting/term_policy.rb
@@ -0,0 +1,30 @@
+class ApplicationSetting
+  class TermPolicy < BasePolicy
+    include Gitlab::Utils::StrongMemoize
+
+    condition(:logged_in, scope: :user) { @user }
+
+    condition(:current_terms, scope: :subject) do
+      Gitlab::CurrentSettings.current_application_settings.latest_terms == @subject
+    end
+
+    condition(:terms_accepted, scope: :user, score: 1) do
+      agreement&.accepted
+    end
+
+    rule { logged_in & current_terms }.policy do
+      enable :accept_terms
+      enable :decline_terms
+    end
+
+    rule { terms_accepted }.prevent :accept_terms
+
+    def agreement
+      strong_memoize(:agreement) do
+        next nil if @user.nil? || @subject.nil?
+
+        @user.term_agreements.find_by(term: @subject)
+      end
+    end
+  end
+end
diff --git a/app/services/users/respond_to_terms_service.rb b/app/services/users/respond_to_terms_service.rb
new file mode 100644
index 00000000000..06d660186cf
--- /dev/null
+++ b/app/services/users/respond_to_terms_service.rb
@@ -0,0 +1,24 @@
+module Users
+  class RespondToTermsService
+    def initialize(user, term)
+      @user, @term = user, term
+    end
+
+    def execute(accepted:)
+      agreement = @user.term_agreements.find_or_initialize_by(term: @term)
+      agreement.accepted = accepted
+
+      if agreement.save
+        store_accepted_term(accepted)
+      end
+
+      agreement
+    end
+
+    private
+
+    def store_accepted_term(accepted)
+      @user.update_column(:accepted_term_id, accepted ? @term.id : nil)
+    end
+  end
+end
diff --git a/app/views/layouts/terms.html.haml b/app/views/layouts/terms.html.haml
index 09c4567a362..b04dbc595a5 100644
--- a/app/views/layouts/terms.html.haml
+++ b/app/views/layouts/terms.html.haml
@@ -3,11 +3,18 @@
 %html{ lang: I18n.locale, class: page_class }
   = render "layouts/head"
 
-  %body{ class: "#{user_application_theme} #{@body_class}", data: { page: body_data_page } }
+  %body{ data: { page: body_data_page } }
     = render 'peek/bar'
     .layout-page.terms
       .content-wrapper
-        %div{ class: "#{(container_class unless @no_container)} #{@content_class}" }
+        .mobile-overlay
+        .alert-wrapper
+          = render "layouts/broadcast"
+          = render 'layouts/header/read_only_banner'
+          = yield :flash_message
+          = render "layouts/flash"
+
+        %div{ class: "#{container_class}" }
           .content{ id: "content-body" }
             .panel.panel-default
               .panel-heading
diff --git a/app/views/users/terms/index.html.haml b/app/views/users/terms/index.html.haml
index 49fdab84069..614dab57331 100644
--- a/app/views/users/terms/index.html.haml
+++ b/app/views/users/terms/index.html.haml
@@ -1,2 +1,12 @@
+- redirect_params = { redirect: @redirect } if @redirect
 .panel-content.rendered-terms
-  = markdown_field(@terms, :terms)
+  = markdown_field(@term, :terms)
+.row-content-block.footer-block.clearfix
+  - if can?(current_user, :accept_terms, @term)
+    .pull-right
+      = button_to accept_term_path(@term, redirect_params), class: 'btn btn-success prepend-left-8' do
+        = _('Accept terms')
+  - if can?(current_user, :decline_terms, @term)
+    .pull-right
+      = button_to decline_term_path(@term, redirect_params), class: 'btn btn-default prepend-left-8' do
+        =  _('Decline and sign out')
diff --git a/spec/controllers/users/terms_controller_spec.rb b/spec/controllers/users/terms_controller_spec.rb
index 74d17748093..50e818a4520 100644
--- a/spec/controllers/users/terms_controller_spec.rb
+++ b/spec/controllers/users/terms_controller_spec.rb
@@ -2,6 +2,7 @@ require 'spec_helper'
 
 describe Users::TermsController do
   let(:user) { create(:user) }
+  let(:term) { create(:term) }
 
   before do
     sign_in user
@@ -15,9 +16,42 @@ describe Users::TermsController do
     end
 
     it 'shows terms when they exist' do
-      create(:term)
+      term
 
       expect(response).to have_gitlab_http_status(:success)
     end
   end
+
+  describe 'POST #accept' do
+    it 'saves that the user accepted the terms' do
+      post :accept, id: term.id
+
+      agreement = user.term_agreements.find_by(term: term)
+
+      expect(agreement.accepted).to eq(true)
+    end
+
+    it 'redirects to a path when specified' do
+      post :accept, id: term.id, redirect: groups_path
+
+      expect(response).to redirect_to(groups_path)
+    end
+  end
+
+  describe 'POST #decline' do
+    it 'stores that the user declined the terms' do
+      post :decline, id: term.id
+
+      agreement = user.term_agreements.find_by(term: term)
+
+      expect(agreement.accepted).to eq(false)
+    end
+
+    it 'signs out the user' do
+      post :decline, id: term.id
+
+      expect(response).to redirect_to(root_path)
+      expect(assigns(:current_user)).to be_nil
+    end
+  end
 end
diff --git a/spec/factories/term_agreements.rb b/spec/factories/term_agreements.rb
new file mode 100644
index 00000000000..557599e663d
--- /dev/null
+++ b/spec/factories/term_agreements.rb
@@ -0,0 +1,6 @@
+FactoryBot.define do
+  factory :term_agreement do
+    term
+    user
+  end
+end
diff --git a/spec/features/users/terms_spec.rb b/spec/features/users/terms_spec.rb
index 34e759bc56a..a33f0937fab 100644
--- a/spec/features/users/terms_spec.rb
+++ b/spec/features/users/terms_spec.rb
@@ -5,12 +5,35 @@ describe 'Users > Terms' do
   let!(:term) { create(:term, terms: 'By accepting, you promise to be nice!') }
 
   before do
+    stub_env('IN_MEMORY_APPLICATION_SETTINGS', 'false')
     sign_in(user)
-
-    visit terms_path
   end
 
   it 'shows the terms' do
+    visit terms_path
+
     expect(page).to have_content('By accepting, you promise to be nice!')
   end
+
+  context 'declining the terms' do
+    it 'returns the user to the app' do
+      visit terms_path
+
+      click_button 'Decline and sign out'
+
+      expect(page).not_to have_content(term.terms)
+      expect(user.reload.terms_accepted?).to be(false)
+    end
+  end
+
+  context 'accepting the terms' do
+    it 'returns the user to the app' do
+      visit terms_path
+
+      click_button 'Accept terms'
+
+      expect(page).not_to have_content(term.terms)
+      expect(user.reload.terms_accepted?).to be(true)
+    end
+  end
 end
diff --git a/spec/helpers/users_helper_spec.rb b/spec/helpers/users_helper_spec.rb
index 9f67277801f..b18c045848f 100644
--- a/spec/helpers/users_helper_spec.rb
+++ b/spec/helpers/users_helper_spec.rb
@@ -1,6 +1,8 @@
 require 'rails_helper'
 
 describe UsersHelper do
+  include TermsHelper
+
   let(:user) { create(:user) }
 
   describe '#user_link' do
@@ -51,5 +53,15 @@ describe UsersHelper do
 
       expect(items).to include(:profile)
     end
+
+    context 'when terms are enforced' do
+      before do
+        enforce_terms
+      end
+
+      it 'hides the profile and the settings tab' do
+        expect(items).not_to include(:settings, :profile, :help)
+      end
+    end
   end
 end
diff --git a/spec/policies/application_setting/term_policy_spec.rb b/spec/policies/application_setting/term_policy_spec.rb
new file mode 100644
index 00000000000..93b5ebf5f72
--- /dev/null
+++ b/spec/policies/application_setting/term_policy_spec.rb
@@ -0,0 +1,50 @@
+require 'spec_helper'
+
+describe ApplicationSetting::TermPolicy do
+  include TermsHelper
+
+  set(:term) { create(:term) }
+  let(:user) { create(:user) }
+
+  subject(:policy) { described_class.new(user, term) }
+
+  before do
+    stub_env('IN_MEMORY_APPLICATION_SETTINGS', 'false')
+  end
+
+  it 'has the correct permissions', :aggregate_failures do
+    is_expected.to be_allowed(:accept_terms)
+    is_expected.to be_allowed(:decline_terms)
+  end
+
+  context 'for anonymous users' do
+    let(:user) { nil }
+
+    it 'has the correct permissions', :aggregate_failures do
+      is_expected.to be_disallowed(:accept_terms)
+      is_expected.to be_disallowed(:decline_terms)
+    end
+  end
+
+  context 'when the terms are not current' do
+    before do
+      create(:term)
+    end
+
+    it 'has the correct permissions', :aggregate_failures do
+      is_expected.to be_disallowed(:accept_terms)
+      is_expected.to be_disallowed(:decline_terms)
+    end
+  end
+
+  context 'when the user already accepted the terms' do
+    before do
+      accept_terms(user)
+    end
+
+    it 'has the correct permissions', :aggregate_failures do
+      is_expected.to be_disallowed(:accept_terms)
+      is_expected.to be_allowed(:decline_terms)
+    end
+  end
+end
diff --git a/spec/services/users/respond_to_terms_service_spec.rb b/spec/services/users/respond_to_terms_service_spec.rb
new file mode 100644
index 00000000000..fb08dd10b87
--- /dev/null
+++ b/spec/services/users/respond_to_terms_service_spec.rb
@@ -0,0 +1,37 @@
+require 'spec_helper'
+
+describe Users::RespondToTermsService do
+  let(:user) { create(:user) }
+  let(:term) { create(:term) }
+
+  subject(:service) { described_class.new(user, term) }
+
+  describe '#execute' do
+    it 'creates a new agreement if it did not exist' do
+      expect { service.execute(accepted: true) }
+        .to change { user.term_agreements.size }.by(1)
+    end
+
+    it 'updates an agreement if it existed' do
+      agreement = create(:term_agreement, user: user, term: term, accepted: true)
+
+      service.execute(accepted: true)
+
+      expect(agreement.reload.accepted).to be_truthy
+    end
+
+    it 'adds the accepted terms to the user' do
+      service.execute(accepted: true)
+
+      expect(user.reload.accepted_term).to eq(term)
+    end
+
+    it 'removes accepted terms when declining' do
+      user.update!(accepted_term: term)
+
+      service.execute(accepted: false)
+
+      expect(user.reload.accepted_term).to be_nil
+    end
+  end
+end