diff --git a/tests/e2e/labelling_test.go b/tests/e2e/labelling_test.go
index 214348967e..d77632f735 100644
--- a/tests/e2e/labelling_test.go
+++ b/tests/e2e/labelling_test.go
@@ -55,6 +55,13 @@ var _ = Describe("Labelling SKR resources", Ordered, func() {
 						shared.ManagedByLabelValue).
 					Should(Succeed())
 			}
+			By("And remote namespace is labelled with istio and warden labels")
+			Eventually(EnsureNamespaceHasCorrectLabels).
+				WithContext(ctx).
+				WithArguments(skrClient, RemoteNamespace, map[string]string{
+					"istio-injection": "enabled",
+					"namespaces.warden.kyma-project.io/validate": "enabled",
+				}).Should(Succeed())
 		})
 
 		It("When Kyma Module is enabled in SKR Kyma CR", func() {
diff --git a/tests/e2e/utils_test.go b/tests/e2e/utils_test.go
index 281ce56c89..8e414a01bb 100644
--- a/tests/e2e/utils_test.go
+++ b/tests/e2e/utils_test.go
@@ -66,13 +66,6 @@ func InitEmptyKymaBeforeAll(kyma *v1beta2.Kyma) {
 			WithContext(ctx).
 			WithArguments(RemoteNamespace, []v1beta2.Module{}, skrClient, shared.StateReady).
 			Should(Succeed())
-		By("And Remote Namespace is labelled correctly")
-		Eventually(EnsureNamespaceHasCorrectLabels).
-			WithContext(ctx).
-			WithArguments(skrClient, RemoteNamespace, map[string]string{
-				"istio-injection": "enabled",
-				"namespaces.warden.kyma-project.io/validate": "enabled",
-			}).Should(Succeed())
 		By("And Runtime Watcher deployment is up and running in SKR", func() {
 			Eventually(CheckPodLogs).
 				WithContext(ctx).