A method and system for encoding and determining labels in a Dual Polarization (DP) Quaternary Phase Shift Keying (QPSK) signal is provided. A label frame, signature sequence, and data payload are combined using a complementary constant-weight code encoding (CCWC) encoder, the output of which is deinterleaved and differentially precoded to generate a polarized tributary of a DP-QPSK signal. This encoding can be duplicated for a second tributary of the DP-QPSK signal. The label can be determined using one or more polarizers and corresponding low-speed photodetectors, each applied to a copy of the DP-QPSK signal. The strongest output of the photodetectors is then used to determine the label. Alternatively, the DP-QPSK signal can be viewed as having XI, XQ, PH, and PV tributaries. These tributaries can then be translated into XI, XQ, YI, and YQ tributaries are encoded into a standard DP-QPSK signal.