diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 8c4cfeec5fa..da5df9f2efe 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -8131,6 +8131,21 @@ module ts {
         }
 
         function checkLabeledStatement(node: LabeledStatement) {
+            // ensure that label is unique
+            // Grammar checking
+            var current = node.parent;
+            while (current) {
+                if (isAnyFunction(current)) {
+                    break;
+                }
+                if (current.kind === SyntaxKind.LabeledStatement && (<LabeledStatement>current).label.text === node.label.text) {
+                    var sourceFile = getSourceFileOfNode(node);
+                    grammarErrorOnNode(node.label, Diagnostics.Duplicate_label_0, getTextOfNodeFromSourceText(sourceFile.text, node.label));
+                    break;
+                }
+                current = current.parent;
+            }
+
             checkSourceElement(node.statement);
         }
 
diff --git a/src/compiler/parser.ts b/src/compiler/parser.ts
index 7fb859f750a..ebd8cc88505 100644
--- a/src/compiler/parser.ts
+++ b/src/compiler/parser.ts
@@ -4651,7 +4651,7 @@ module ts {
                 case SyntaxKind.GetAccessor:                    return checkGetAccessor(<MethodDeclaration>node);
                 //case SyntaxKind.HeritageClause:                 return checkHeritageClause(<HeritageClause>node);
                 //case SyntaxKind.InterfaceDeclaration:           return checkInterfaceDeclaration(<InterfaceDeclaration>node);
-                case SyntaxKind.LabeledStatement:               return checkLabeledStatement(<LabeledStatement>node);
+                //case SyntaxKind.LabeledStatement:               return checkLabeledStatement(<LabeledStatement>node);
                 case SyntaxKind.PropertyAssignment:             return checkPropertyAssignment(<PropertyAssignment>node);
                 case SyntaxKind.MethodDeclaration:
                 case SyntaxKind.MethodSignature: