Office 365 Client with SharePoint 2013 - Co-Authoring Issue

Hi All,

We have recently deployed the Office 365 client to our user base and have noticed an issue when co-authoring documents using our on site SharePoint 2013 server. Basically users are unable to tell where other are working in the document. Previously with Office 2013 they would see peoples names and dotted lines where they were editing. Using the 365 client this no longer works. 

Has anyone else had this issue? Its proving quite frustrating for our users.