diff -up shadow-4.5/lib/semanage.c.selinux shadow-4.5/lib/semanage.c
--- shadow-4.5/lib/semanage.c.selinux	2014-09-01 16:36:40.000000000 +0200
+++ shadow-4.5/lib/semanage.c	2017-07-20 16:40:49.680297319 +0200
@@ -294,6 +294,9 @@ int set_seuser (const char *login_name,
 
 	ret = 0;
 
+        /* drop obsolete matchpathcon cache */
+        matchpathcon_fini();
+
 done:
 	semanage_seuser_key_free (key);
 	semanage_handle_destroy (handle);
@@ -369,6 +372,10 @@ int del_seuser (const char *login_name)
 	}
 
 	ret = 0;
+
+        /* drop obsolete matchpathcon cache */
+        matchpathcon_fini();
+
 done:
 	semanage_handle_destroy (handle);
 	return ret;
diff -up shadow-4.5/src/useradd.c.selinux shadow-4.5/src/useradd.c
--- shadow-4.5/src/useradd.c.selinux	2017-07-20 16:40:49.677297246 +0200
+++ shadow-4.5/src/useradd.c	2017-07-20 16:44:58.195275331 +0200
@@ -2042,6 +2042,7 @@ static void create_mail (void)
  */
 int main (int argc, char **argv)
 {
+	int rv = E_SUCCESS;
 #ifdef ACCT_TOOLS_SETUID
 #ifdef USE_PAM
 	pam_handle_t *pamh = NULL;
@@ -2262,27 +2263,11 @@ int main (int argc, char **argv)
 
 	usr_update ();
 
-	if (mflg) {
-		create_home ();
-		if (home_added) {
-			copy_tree (def_template, user_home, false, false,
-			           (uid_t)-1, user_id, (gid_t)-1, user_gid);
-		} else {
-			fprintf (stderr,
-			         _("%s: warning: the home directory already exists.\n"
-			           "Not copying any file from skel directory into it.\n"),
-			         Prog);
-		}
-
-	}
-
-	/* Do not create mail directory for system accounts */
-	if (!rflg) {
-		create_mail ();
-	}
-
 	close_files ();
 
+	nscd_flush_cache ("passwd");
+	nscd_flush_cache ("group");
+
 	/*
 	 * tallylog_reset needs to be able to lookup
 	 * a valid existing user name,
@@ -2293,8 +2278,9 @@ int main (int argc, char **argv)
 	}
 
 #ifdef WITH_SELINUX
-	if (Zflg) {
-		if (set_seuser (user_name, user_selinux) != 0) {
+	if (Zflg && *user_selinux) {
+		if (is_selinux_enabled () > 0) {
+		    if (set_seuser (user_name, user_selinux) != 0) {
 			fprintf (stderr,
 			         _("%s: warning: the user name %s to %s SELinux user mapping failed.\n"),
 			         Prog, user_name, user_selinux);
@@ -2303,14 +2289,31 @@ int main (int argc, char **argv)
 			              "adding SELinux user mapping",
 			              user_name, (unsigned int) user_id, 0);
 #endif				/* WITH_AUDIT */
-			fail_exit (E_SE_UPDATE);
+			rv = E_SE_UPDATE;
+		    }
 		}
 	}
-#endif				/* WITH_SELINUX */
+#endif
 
-	nscd_flush_cache ("passwd");
-	nscd_flush_cache ("group");
+	if (mflg) {
+		create_home ();
+		if (home_added) {
+			copy_tree (def_template, user_home, false, true,
+			           (uid_t)-1, user_id, (gid_t)-1, user_gid);
+		} else {
+			fprintf (stderr,
+			         _("%s: warning: the home directory already exists.\n"
+			           "Not copying any file from skel directory into it.\n"),
+			         Prog);
+		}
+
+	}
+
+	/* Do not create mail directory for system accounts */
+	if (!rflg) {
+		create_mail ();
+	}
 
-	return E_SUCCESS;
+	return rv;
 }