1 files changed, 14 insertions, 2 deletions

diff --git a/app/services/issues/close_service.rb b/app/services/issues/close_service.rb
index 746f7d1f4c1..1700d1d8586 100644
--- a/app/services/issues/close_service.rb
+++ b/app/services/issues/close_service.rb
@@ -24,8 +24,8 @@ module Issues
         return issue
       end
 
-      if project.issues_enabled? && issue.close
-        issue.update(closed_by: current_user)
+      if project.issues_enabled? && issue.close(current_user)
+        remove_on_close_labels_from(issue)
         event_service.close_issue(issue, current_user)
         create_note(issue, closed_via) if system_note
 
@@ -52,6 +52,18 @@ module Issues
 
     private
 
+    def remove_on_close_labels_from(issue)
+      old_labels = issue.labels.to_a
+
+      issue.label_links.with_remove_on_close_labels.delete_all
+      issue.labels.reset
+
+      Issuable::CommonSystemNotesService.new(project: project, current_user: current_user).execute(
+        issue,
+        old_labels: old_labels
+      )
+    end
+
     def close_external_issue(issue, closed_via)
       return unless project.external_issue_tracker&.support_close_issue?