diff --git a/app/services/issuable_base_service.rb b/app/services/issuable_base_service.rb
index fbe9b7d7f16e2636d9c464062b9fc5fd40be5e0d..e3dc569152cda3af69f5719f6a94fffa0461095a 100644
--- a/app/services/issuable_base_service.rb
+++ b/app/services/issuable_base_service.rb
@@ -72,18 +72,17 @@ class IssuableBaseService < BaseService
     if params[:add_label_ids].present? || params[:remove_label_ids].present?
       params.delete(:label_ids)
 
-      filter_labels_by_name([:add_label_ids, :remove_label_ids])
+      filter_labels_in_param(:add_label_ids)
+      filter_labels_in_param(:remove_label_ids)
     else
-      filter_labels_by_name([:label_ids])
+      filter_labels_in_param(:label_ids)
     end
   end
 
-  def filter_labels_by_name(keys)
-    keys.each do |key|
-      next if params[key].to_a.empty?
+  def filter_labels_in_param(key)
+    return if params[key].to_a.empty?
 
-      params[key] = project.labels.where(id: params[key]).pluck(:id)
-    end
+    params[key] = project.labels.where(id: params[key]).pluck(:id)
   end
 
   def update_issuable(issuable, attributes)
@@ -94,7 +93,7 @@ class IssuableBaseService < BaseService
       issuable.label_ids |= add_label_ids if add_label_ids
       issuable.label_ids -= remove_label_ids if remove_label_ids
 
-      issuable.assign_attributes(attributes)
+      issuable.assign_attributes(attributes.merge(updated_by: current_user))
 
       issuable.save
     end
@@ -105,7 +104,7 @@ class IssuableBaseService < BaseService
     filter_params
     old_labels = issuable.labels.to_a
 
-    if params.present? && update_issuable(issuable, params.merge(updated_by: current_user))
+    if params.present? && update_issuable(issuable, params)
       issuable.reset_events_cache
       handle_common_system_notes(issuable, old_labels: old_labels)
       handle_changes(issuable, old_labels: old_labels)
diff --git a/spec/services/issues/update_service_spec.rb b/spec/services/issues/update_service_spec.rb
index be19be17151cbd170999a3ae63dd9f26f9862c19..dacbcd8fb46e07c5ae61a41490f2418cce8ab99a 100644
--- a/spec/services/issues/update_service_spec.rb
+++ b/spec/services/issues/update_service_spec.rb
@@ -1,3 +1,4 @@
+# coding: utf-8
 require 'spec_helper'
 
 describe Issues::UpdateService, services: true do
@@ -273,5 +274,50 @@ describe Issues::UpdateService, services: true do
         end
       end
     end
+
+    context 'updating labels' do
+      let(:label3) { create(:label, project: project) }
+      let(:result) { Issues::UpdateService.new(project, user, params).execute(issue).reload }
+
+      context 'when add_label_ids and label_ids are passed' do
+        let(:params) { { label_ids: [label.id], add_label_ids: [label3.id] } }
+
+        it 'ignores the label_ids parameter' do
+          expect(result.label_ids).not_to include(label.id)
+        end
+
+        it 'adds the passed labels' do
+          expect(result.label_ids).to include(label3.id)
+        end
+      end
+
+      context 'when remove_label_ids and label_ids are passed' do
+        let(:params) { { label_ids: [], remove_label_ids: [label.id] } }
+
+        before { issue.update_attributes(labels: [label, label3]) }
+
+        it 'ignores the label_ids parameter' do
+          expect(result.label_ids).not_to be_empty
+        end
+
+        it 'removes the passed labels' do
+          expect(result.label_ids).not_to include(label.id)
+        end
+      end
+
+      context 'when add_label_ids and remove_label_ids are passed' do
+        let(:params) { { add_label_ids: [label3.id], remove_label_ids: [label.id] } }
+
+        before { issue.update_attributes(labels: [label]) }
+
+        it 'adds the passed labels' do
+          expect(result.label_ids).to include(label3.id)
+        end
+
+        it 'removes the passed labels' do
+          expect(result.label_ids).not_to include(label.id)
+        end
+      end
+    end
   end
 end