diff --git a/app/observers/user_observer.rb b/app/observers/user_observer.rb
index 654621f7..aed320f6 100644
--- a/app/observers/user_observer.rb
+++ b/app/observers/user_observer.rb
@@ -1,8 +1,9 @@
 class UserObserver < ActiveRecord::Observer
   def after_create(user)
     log_info("User \"#{user.name}\" (#{user.email}) was created")
-
-    Notify.new_user_email(user.id, user.password).deliver
+    unless user.extern_uid?
+      Notify.new_user_email(user.id, user.password).deliver
+    end
   end
 
   def after_destroy user
diff --git a/spec/observers/user_observer_spec.rb b/spec/observers/user_observer_spec.rb
index 0420a250..8ce0b577 100644
--- a/spec/observers/user_observer_spec.rb
+++ b/spec/observers/user_observer_spec.rb
@@ -13,17 +13,25 @@ describe UserObserver do
   end
 
   context 'when a new user is created' do
-    let(:user) { double(:user, id: 42, password: 'P@ssword!', name: 'John', email: 'u@mail.local') }
     let(:notification) { double :notification }
 
-    it 'sends an email' do
+    it 'sends an email unless external' do
+      user = double(:user, id: 42, password: 'P@ssword!', name: 'John', email: 'u@mail.local', extern_uid?: false)
       notification.should_receive(:deliver)
       Notify.should_receive(:new_user_email).with(user.id, user.password).and_return(notification)
 
       subject.after_create(user)
     end
 
+    it 'no email for external' do
+      user = double(:user, id: 42, password: 'P@ssword!', name: 'John', email: 'u@mail.local', extern_uid?: true)
+      Notify.should_not_receive(:new_user_email)
+
+      subject.after_create(user)
+    end
+
     it 'trigger logger' do
+      user = double(:user, id: 42, password: 'P@ssword!', name: 'John', email: 'u@mail.local', extern_uid?: false)
       Gitlab::AppLogger.should_receive(:info)
       subject.after_create(user)
     end