diff --git a/.github/labeler.yml b/.github/labeler.yml
index 19d08aeb8b..fc3f06da92 100644
--- a/.github/labeler.yml
+++ b/.github/labeler.yml
@@ -51,5 +51,5 @@ projects:
 
 # Any python files modifed but no test files modified
 needs-tests:
-- any: ['**/*.py']
-- all: ['!**/test*.py']
+- any: ['erpnext/**/*.py']
+  all: ['!erpnext/**/test*.py']
diff --git a/.github/workflows/labeller.yml b/.github/workflows/labeller.yml
index 0e112f97ac..331ddc9b80 100644
--- a/.github/workflows/labeller.yml
+++ b/.github/workflows/labeller.yml
@@ -9,4 +9,3 @@ jobs:
     - uses: actions/labeler@v3
       with:
         repo-token: "${{ secrets.GITHUB_TOKEN }}"
-        sync-labels: true