3 files changed, 61 insertions, 0 deletions
diff --git a/spec/factories/merge_requests.rb b/spec/factories/merge_requests.rb
index c6a08d78b78..f780e01253c 100644
--- a/spec/factories/merge_requests.rb
+++ b/spec/factories/merge_requests.rb
@@ -68,5 +68,15 @@ FactoryGirl.define do
     factory :closed_merge_request, traits: [:closed]
     factory :reopened_merge_request, traits: [:reopened]
     factory :merge_request_with_diffs, traits: [:with_diffs]
+
+    factory :labeled_merge_request do
+      transient do
+        labels []
+      end
+
+      after(:create) do |merge_request, evaluator|
+        merge_request.update_attributes(labels: evaluator.labels)
+      end
+    end
   end
 end
diff --git a/spec/services/labels/transfer_service_spec.rb b/spec/services/labels/transfer_service_spec.rb
new file mode 100644
index 00000000000..a72a05f6c99
--- /dev/null
+++ b/spec/services/labels/transfer_service_spec.rb
@@ -0,0 +1,41 @@
+require 'spec_helper'
+
+describe Labels::TransferService, services: true do
+  describe '#execute' do
+    let(:user)    { create(:user) }
+    let(:group_1) { create(:group) }
+    let(:group_2) { create(:group) }
+    let(:project) { create(:project, namespace: group_2) }
+
+    let(:group_label_1) { create(:group_label, group: group_1, name: 'Group Label 1') }
+    let(:group_label_2) { create(:group_label, group: group_1, name: 'Group Label 2') }
+    let(:group_label_3) { create(:group_label, group: group_1, name: 'Group Label 3') }
+    let(:group_label_4) { create(:group_label, group: group_2, name: 'Group Label 4') }
+    let(:project_label_1) { create(:label, project: project, name: 'Project Label 1') }
+
+    subject(:service) { described_class.new(user, group_1, project) }
+
+    before do
+      create(:labeled_issue, project: project, labels: [group_label_1])
+      create(:labeled_issue, project: project, labels: [group_label_4])
+      create(:labeled_issue, project: project, labels: [project_label_1])
+      create(:labeled_merge_request, source_project: project, labels: [group_label_1, group_label_2])
+    end
+
+    it 'recreates the missing group labels at project level' do
+      expect { service.execute }.to change(project.labels, :count).by(2)
+    end
+
+    it 'does not recreate missing group labels that are not applied to issues or merge requests' do
+      service.execute
+
+      expect(project.labels.where(title: group_label_3.title)).to be_empty
+    end
+
+    it 'does not recreate missing group labels that already exist in the project group' do
+      service.execute
+
+      expect(project.labels.where(title: group_label_4.title)).to be_empty
+    end
+  end
+end
diff --git a/spec/services/projects/transfer_service_spec.rb b/spec/services/projects/transfer_service_spec.rb
index 57c71544dff..1540b90163a 100644
--- a/spec/services/projects/transfer_service_spec.rb
+++ b/spec/services/projects/transfer_service_spec.rb
@@ -71,4 +71,14 @@ describe Projects::TransferService, services: true do
       it { expect(private_project.visibility_level).to eq(Gitlab::VisibilityLevel::PRIVATE) }
     end
   end
+
+  context 'missing group labels applied to issues or merge requests' do
+    it 'delegates tranfer to Labels::TransferService' do
+      group.add_owner(user)
+
+      expect_any_instance_of(Labels::TransferService).to receive(:execute).once.and_call_original
+
+      transfer_project(project, user, group)
+    end
+  end
 end