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Google identity free allows you to create a users but not use all the services/resources
We do have a policy, its explicitly against our acceptable use policy. See bullet point 9
https://workspace.google.com/terms/use_policy/#:~:text=%E2%80%A2%20to%20grant%20multiple%20individua...
and can result in suspension and termination of your account.
To add to this, you can create whichever users you want, but you will need to pay for a workspace license if those users need to use workspace services. It's one of those cost of doing business things
Google identity free allows you to create a users but not use all the services/resources