diff --git a/Jenkinsfile b/Jenkinsfile
index 9e57033c4a02..16423f973580 100644
--- a/Jenkinsfile
+++ b/Jenkinsfile
@@ -1555,6 +1555,105 @@ pipeline {
         }
       }
     }
+    stage('Punctuation & Capitalization, Different ways of passing labels to model') {
+      when {
+        anyOf {
+          branch 'main'
+          changeRequest target: 'main'
+        }
+      }
+      failFast true
+      stages {
+        stage('Punctuation & Capitalization, Using model.common_datasest_parameters.label_vocab_dir') {
+          steps {
+            sh 'cd examples/nlp/token_classification && \
+            label_vocab_dir=label_vocab_dir && \
+            mkdir -p ${label_vocab_dir} && \
+            punct_label_vocab="${label_vocab_dir}/punct_label_vocab.csv" && \
+            capit_label_vocab="${label_vocab_dir}/capit_label_vocab.csv" && \
+            printf "O\n,\n.\n?\n" > "${punct_label_vocab}" && \
+            printf "O\nU\n" > "${capit_label_vocab}" && \
+            CUDA_LAUNCH_BLOCKING=1 python punctuation_capitalization_train_evaluate.py \
+              model.train_ds.use_tarred_dataset=false \
+              model.train_ds.ds_item=/home/TestData/nlp/token_classification_punctuation \
+              model.validation_ds.ds_item=/home/TestData/nlp/token_classification_punctuation \
+              model.test_ds.ds_item=/home/TestData/nlp/token_classification_punctuation \
+              model.language_model.pretrained_model_name=distilbert-base-uncased \
+              model.common_dataset_parameters.label_vocab_dir="${label_vocab_dir}" \
+              model.class_labels.punct_labels_file="$(basename "${punct_label_vocab}")" \
+              model.class_labels.capit_labels_file="$(basename "${capit_label_vocab}")" \
+              +model.train_ds.use_cache=false \
+              +model.validation_ds.use_cache=false \
+              +model.test_ds.use_cache=false \
+              trainer.devices=[0,1] \
+              trainer.strategy=ddp \
+              trainer.max_epochs=1 \
+              +exp_manager.explicit_log_dir=/home/TestData/nlp/token_classification_punctuation/output \
+              +do_testing=false && \
+            CUDA_LAUNCH_BLOCKING=1 python punctuation_capitalization_train_evaluate.py \
+              +do_training=false \
+              +do_testing=true \
+              ~model.train_ds \
+              ~model.validation_ds \
+              model.test_ds.ds_item=/home/TestData/nlp/token_classification_punctuation \
+              pretrained_model=/home/TestData/nlp/token_classification_punctuation/output/checkpoints/Punctuation_and_Capitalization.nemo \
+              +model.train_ds.use_cache=false \
+              +model.validation_ds.use_cache=false \
+              +model.test_ds.use_cache=false \
+              trainer.devices=[0,1] \
+              trainer.strategy=ddp \
+              trainer.max_epochs=1 \
+              exp_manager=null && \
+            rm -r "${label_vocab_dir}" && \
+            rm -rf /home/TestData/nlp/token_classification_punctuation/output/*'
+          }
+        }
+        stage('Punctuation & Capitalization, Using model.common_datasest_parameters.{punct,capit}_label_ids') {
+          steps {
+            sh 'cd examples/nlp/token_classification && \
+            conf_path=/home/TestData/nlp/token_classification_punctuation && \
+            conf_name=punctuation_capitalization_config_with_ids && \
+            cp conf/punctuation_capitalization_config.yaml "${conf_path}/${conf_name}.yaml" && \
+            sed -i $\'s/punct_label_ids: null/punct_label_ids: {O: 0, \\\',\\\': 1, .: 2, \\\'?\\\': 3}/\' \
+              "${conf_path}/${conf_name}.yaml" && \
+            sed -i $\'s/capit_label_ids: null/capit_label_ids: {O: 0, U: 1}/\' \
+              "${conf_path}/${conf_name}.yaml" && \
+            CUDA_LAUNCH_BLOCKING=1 python punctuation_capitalization_train_evaluate.py \
+              --config-path "${conf_path}" \
+              --config-name "${conf_name}" \
+              model.train_ds.use_tarred_dataset=false \
+              model.train_ds.ds_item=/home/TestData/nlp/token_classification_punctuation \
+              model.validation_ds.ds_item=/home/TestData/nlp/token_classification_punctuation \
+              model.test_ds.ds_item=/home/TestData/nlp/token_classification_punctuation \
+              model.language_model.pretrained_model_name=distilbert-base-uncased \
+              +model.train_ds.use_cache=false \
+              +model.validation_ds.use_cache=false \
+              +model.test_ds.use_cache=false \
+              trainer.devices=[0,1] \
+              trainer.strategy=ddp \
+              trainer.max_epochs=1 \
+              +exp_manager.explicit_log_dir=/home/TestData/nlp/token_classification_punctuation/output \
+              +do_testing=false && \
+            CUDA_LAUNCH_BLOCKING=1 python punctuation_capitalization_train_evaluate.py \
+              +do_training=false \
+              +do_testing=true \
+              ~model.train_ds \
+              ~model.validation_ds \
+              model.test_ds.ds_item=/home/TestData/nlp/token_classification_punctuation \
+              pretrained_model=/home/TestData/nlp/token_classification_punctuation/output/checkpoints/Punctuation_and_Capitalization.nemo \
+              +model.train_ds.use_cache=false \
+              +model.validation_ds.use_cache=false \
+              +model.test_ds.use_cache=false \
+              trainer.devices=[0,1] \
+              trainer.strategy=ddp \
+              trainer.max_epochs=1 \
+              exp_manager=null && \
+            rm -rf /home/TestData/nlp/token_classification_punctuation/output/* && \
+            rm "${conf_path}/${conf_name}.yaml"'
+          }
+        }
+      }
+    }
     stage('Punctuation & Capitalization inference') {
       when {
         anyOf {
diff --git a/nemo/collections/nlp/models/token_classification/punctuation_capitalization_model.py b/nemo/collections/nlp/models/token_classification/punctuation_capitalization_model.py
index be7fa62a382f..5a5f6c025eea 100644
--- a/nemo/collections/nlp/models/token_classification/punctuation_capitalization_model.py
+++ b/nemo/collections/nlp/models/token_classification/punctuation_capitalization_model.py
@@ -638,16 +638,16 @@ def _check_label_config_parameters(self) -> None:
                 )
 
     def _extract_label_vocab_files_from_config(self) -> Tuple[Optional[Path], Optional[Path]]:
-        if self._cfg.common_dataset_parameters.label_vocab_dir is None:
-            if self._is_model_being_restored():
-                punct_label_vocab_file = self._cfg.class_labels.punct_labels_file
-                capit_label_vocab_file = self._cfg.class_labels.capit_labels_file
-            else:
-                punct_label_vocab_file, capit_label_vocab_file = None, None
+        if self._is_model_being_restored():
+            punct_label_vocab_file = self._cfg.class_labels.punct_labels_file
+            capit_label_vocab_file = self._cfg.class_labels.capit_labels_file
         else:
-            label_vocab_dir = Path(self._cfg.common_dataset_parameters.label_vocab_dir).expanduser()
-            punct_label_vocab_file = label_vocab_dir / self._cfg.class_labels.punct_labels_file
-            capit_label_vocab_file = label_vocab_dir / self._cfg.class_labels.capit_labels_file
+            if self._cfg.common_dataset_parameters.label_vocab_dir is None:
+                punct_label_vocab_file, capit_label_vocab_file = None, None
+            else:
+                label_vocab_dir = Path(self._cfg.common_dataset_parameters.label_vocab_dir).expanduser()
+                punct_label_vocab_file = label_vocab_dir / self._cfg.class_labels.punct_labels_file
+                capit_label_vocab_file = label_vocab_dir / self._cfg.class_labels.capit_labels_file
         return punct_label_vocab_file, capit_label_vocab_file
 
     def _set_label_ids(self) -> None: