Git on ubuntu server: other users cannot push

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I have setup a git server on an ubuntu server machine.
Everything seems to work OK, and I am able to pull/push from other machines via ssh.

What is the problem is when I try to add other users to the server.
I create their accounts and they are able to pull, but when they try to push they get a message:

error: remote unpack failed: unable to create temporary object directory

I read online that this usually has to do with disk space on the remonte machine, but it's not the case here.

I suspect something with permissions, but i cannot find anything!

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