diff --git a/lib/git-hooks.js b/lib/git-hooks.js
index f7f911c..37c55f1 100644
--- a/lib/git-hooks.js
+++ b/lib/git-hooks.js
@@ -47,9 +47,11 @@ module.exports = {
             throw new Error('git-hooks already installed');
         }
 
-        if (fsHelpers.exists(hooksPath)) {
-            fs.renameSync(hooksPath, hooksOldPath);
+        if (!fsHelpers.exists(hooksPath)) {
+            // Standard hooks folder has been removed - make an empty placeholder one
+            fsHelpers.makeDir(hooksPath);
         }
+        fs.renameSync(hooksPath, hooksOldPath);
 
         var hookTemplate = fs.readFileSync(__dirname + '/' + HOOKS_TEMPLATE_FILE_NAME);
         var pathToGitHooks = __dirname;
@@ -86,13 +88,11 @@ module.exports = {
         var hooksPath = path.resolve(gitPath, HOOKS_DIRNAME);
         var hooksOldPath = path.resolve(gitPath, HOOKS_OLD_DIRNAME);
 
-        if (!fsHelpers.exists(hooksPath)) {
-            throw new Error('git-hooks is not installed');
-        }
-
         if (fsHelpers.exists(hooksOldPath)) {
             fsHelpers.removeDir(hooksPath);
             fs.renameSync(hooksOldPath, hooksPath);
+        } else {
+            throw new Error('git-hooks is not installed');
         }
     },
 
diff --git a/tests/uninstall.test.js b/tests/uninstall.test.js
index f15673e..56fa421 100644
--- a/tests/uninstall.test.js
+++ b/tests/uninstall.test.js
@@ -1,15 +1,22 @@
 require('chai').should();
+var exec = require('child_process').exec;
 var gitHooks = require('../lib/git-hooks');
 var fsHelpers = require('../lib/fs-helpers');
 
-var SANDBOX_PATH = __dirname + '/tmp-sandbox/';
+var SANDBOX_PATH = '/tmp/tmp-sandbox/';
 var GIT_ROOT = SANDBOX_PATH + '.git/';
 var GIT_HOOKS = GIT_ROOT + 'hooks';
 var GIT_HOOKS_OLD = GIT_ROOT + 'hooks.old';
 
 describe('--uninstall', function () {
-    beforeEach(function () {
-        fsHelpers.makeDir(GIT_ROOT);
+    beforeEach(function (done) {
+        fsHelpers.makeDir(SANDBOX_PATH);
+        exec('git init', {cwd: SANDBOX_PATH}, function (err) {
+            if (err) {
+                throw err;
+            }
+            done();
+        });
     });
 
     afterEach(function () {
@@ -39,19 +46,18 @@ describe('--uninstall', function () {
     });
 
     describe('when backup is absent', function () {
-        beforeEach(function () {
-            fsHelpers.makeDir(GIT_HOOKS);
-        });
 
         it('should not remove hooks directory', function () {
-            gitHooks.uninstall(SANDBOX_PATH);
+            var fn = function () {
+                gitHooks.uninstall(SANDBOX_PATH);
+            };
+            fn.should.throw(Error);
             fsHelpers.exists(GIT_HOOKS).should.be.true;
         });
     });
 
     describe('when backup exists', function () {
         beforeEach(function () {
-            fsHelpers.makeDir(GIT_HOOKS);
             fsHelpers.makeDir(GIT_HOOKS_OLD);
         });