A method and system for allocating and controlling a hierarchy of labels in an MPLS network is provided. The hierarchy of labels, inserted into MPLS packets, is introduced so as to correspond to the hierarchy of sub-flows within a data flow. The labels have the established dependency so that positions of labels in the hierarchy identify a sequence of processing the labels and functions associated with the labels. The system for allocating and controlling the hierarchy of MPLS labels includes a first control plane mapper for releasing available labels, a first controller for assigning the released labels according to the hierarchy, means for transmitting the labels in the network, a second controller for detecting the labels, and a second control plane mapper for maintaining current label dependency within the hierarchy. If required, re-addressing of the hierarchy of labels may be performed to maintain flow-sub-flow association throughout two adjacent networks. In the preferred embodiments on the invention the method of allocating and controlling hierarchy of labels is applied to sub-flows within FA-LSP flows, and to multi-cast services in the network associated with a function of flooding and filtering data within a network node.