diff --git a/modules/Components/src/client/ACASFormFields.coffee b/modules/Components/src/client/ACASFormFields.coffee
index 5147f01d0..648cdfd42 100644
--- a/modules/Components/src/client/ACASFormFields.coffee
+++ b/modules/Components/src/client/ACASFormFields.coffee
@@ -188,7 +188,11 @@ class ACASFormLSLabelFieldController extends ACASFormAbstractFieldController
 		@isValid value, (isValid) =>
 			if isValid
 				@clearError()
-				if value != ""
+				# Behavior of persistance layer on save is to look up auto label sequences based on 
+				# thing lsTypeAndKind and label lsTypeAndKind
+				# If the label text is "" or null then it will set the next auto sequence value
+				# so in this case its ok to send "" and ignored = false
+				if value != "" || @getModel.get("isAutoLabel") 
 					@getModel().set
 						labelText: value
 						ignored: false
diff --git a/modules/ServerAPI/src/client/Thing.coffee b/modules/ServerAPI/src/client/Thing.coffee
index 71907c2c4..8317f5c68 100644
--- a/modules/ServerAPI/src/client/Thing.coffee
+++ b/modules/ServerAPI/src/client/Thing.coffee
@@ -72,7 +72,10 @@ class Thing extends Backbone.Model
 		attsToSave = super(options)
 		if @deleteEmptyLabelsValsItxsBeforeSave
 			toDel = attsToSave.lsLabels.filter (lab) ->
-				(lab.get('ignored') || lab.get('labelText')=="") && lab.isNew()
+				isAutoLabel = false
+				if typeof(lab.get("isAutoLabel")) != "undefined" && lab.get("isAutoLabel") == true
+					isAutoLabel = true
+				(lab.get('ignored') || (lab.get('labelText')=="" && !isAutoLabel)) && lab.isNew()
 			for lab in toDel
 				attsToSave.lsLabels.remove lab
 
@@ -217,6 +220,13 @@ class Thing extends Backbone.Model
 					newLabel.set key: dLabel.key
 					newLabel.set preferred: dLabel.preferred
 
+					# If auto label is set then use it (evaluating only to true if set to true)
+					# Otherwise set the deafault to false
+					isAutoLabel = false
+					if typeof(dLabel.isAutoLabel) != "undefined" && dLabel.isAutoLabel==true
+						isAutoLabel = true
+					newLabel.set isAutoLabel: isAutoLabel
+
 					newLabel.set unique: dLabel.unique
 					newLabel.set thingType: @get("lsType")
 					newLabel.set thingKind: @get("lsKind")