diff -Nuarp rsync-3.0.7.orig/generator.c rsync-3.0.7/generator.c
--- rsync-3.0.7.orig/generator.c	2009-12-23 20:36:27.000000000 +0100
+++ rsync-3.0.7/generator.c	2014-01-13 17:28:29.008000000 +0100
@@ -1434,6 +1434,19 @@ static void recv_generator(char *fname,
 				dry_missing_dir = file;
 			file->flags |= FLAG_MISSING_DIR;
 		}
+
+		if (update_only > 0 && statret == 0
+		    && cmp_time(sx.st.st_mtime, file->modtime) > 0) {
+			if (verbose > 1)
+				rprintf(FINFO, "%s is newer\n", fname);
+#ifdef SUPPORT_HARD_LINKS
+			if (F_IS_HLINKED(file))
+				handle_skipped_hlink(file, itemizing, code, f_out);
+#endif
+			file->flags |= FLAG_DONT_TOUCH;
+			goto cleanup;
+		}
+
 		real_ret = statret;
 		real_sx = sx;
 		if (file->flags & FLAG_DIR_CREATED)
@@ -2049,6 +2062,14 @@ static void touch_up_dirs(struct file_li
 		if (!S_ISDIR(file->mode)
 		 || (!implied_dirs && file->flags & FLAG_IMPLIED_DIR))
 			continue;
+		if (S_ISDIR(file->mode) && file->flags & FLAG_DONT_TOUCH) {
+			fname = f_name(file, NULL);
+			if (verbose > 3) {
+				rprintf(FINFO, "skipping touch_up_dirs: %s (%d)\n",
+					NS(fname), i);
+				continue;
+			}
+		}
 		if (verbose > 3) {
 			fname = f_name(file, NULL);
 			rprintf(FINFO, "touch_up_dirs: %s (%d)\n",
diff -Nuarp rsync-3.0.7.orig/rsync.h rsync-3.0.7/rsync.h
--- rsync-3.0.7.orig/rsync.h	2009-12-23 20:36:27.000000000 +0100
+++ rsync-3.0.7/rsync.h	2014-01-13 17:23:42.056000000 +0100
@@ -80,6 +80,7 @@
 #define FLAG_LENGTH64 (1<<9)	/* sender/receiver/generator */
 #define FLAG_SKIP_GROUP (1<<10)	/* receiver/generator */
 #define FLAG_TIME_FAILED (1<<11)/* generator */
+#define FLAG_DONT_TOUCH (1<<12)/* generator */
 
 /* These flags are passed to functions but not stored. */