Sales Compensation, Quota Capacity & Commission PlansPlaybook3 min readUpdated September 2026

Paying Commission When a Sales Rep Goes on Leave

A rep going on leave raises a question most comp plans never answer directly: what happens to the deals already in their pipeline, and what happens to the quota they're supposed to hit while they're out. Getting this wrong either shortchanges the rep on leave or dumps unpaid work on whoever covers their book.

Here's a sequence you can follow the first time a rep on your team takes extended leave, so the plan doesn't get written under pressure.

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Step 1: Separate Quota Relief From Commission Continuity

These are two different decisions and conflating them causes most of the confusion. Quota relief means adjusting the rep's target downward to reflect the time they're out, usually prorated by the number of working days missed. Commission continuity means deciding what they're paid on deals that close while they're away, whether those deals were already in late-stage pipeline or newly created by whoever covers the territory.

Decide both before the leave starts, and put the decision in writing that the rep can read before they go.

Step 2: Split the Pipeline by Deal Stage

Not every open deal needs the same treatment. A useful split:

  • Deals already verbally committed or in contract review: the rep on leave typically keeps full credit, since the selling work is done
  • Deals mid-cycle with active buyer engagement: split credit between the rep on leave and whoever covers the account, often fifty percent each, though the exact split is a policy call
  • Deals still in early discovery: reassign fully to the covering rep, since most of the selling work remains

Put this split in the same written policy from step one so managers aren't negotiating it deal by deal under time pressure.

Step 3: Decide Who Covers the Book, and How They're Paid

Someone has to answer emails and run meetings for accounts that can't just sit untouched for weeks. If you're assigning coverage to another rep, that person needs some form of credit for the extra work, whether that's a flat stipend, a percentage of deals they help close, or credit toward their own quota for meetings they run. Covering a territory for free, on top of a full existing book, is a fast way to burn out your best rep and discourage anyone from volunteering next time.

Managers sometimes default to spreading coverage across the whole team rather than naming one person, thinking it's fairer. In practice this tends to mean no one really owns the accounts, and deals stall because everyone assumes someone else picked up the thread. Name one covering rep per account, even if the workload gets split across a few people overall.

Step 4: Handle the Return-to-Quota Ramp

A rep coming back from a multi-week leave usually needs a short ramp before returning to full quota, similar to a new hire's onboarding period but shorter, since they already know the product and accounts. Set this ramp length in advance rather than deciding case by case when someone actually returns, so the policy feels consistent across the team regardless of who's asking.

Where This Belongs in Your HR System

Leave of absence tracking, prorated quota math, and covering-rep stipends all touch payroll, so the policy needs a home outside of a sales manager's personal spreadsheet. Rippling and Deel both handle leave tracking and payroll adjustments, which keeps the comp side of a leave policy auditable instead of living in someone's memory. Deel's statutory compliance features matter in particular if your team includes reps outside the country where leave laws differ from where your company is headquartered.

Put the Policy in the Offer Letter Stage, Not the Crisis Stage

The worst time to design a leave-of-absence comp policy is the week after a rep tells their manager they need surgery or is expecting a child. Build the policy while no one's leave is pending, store it somewhere every rep can find on their own, such as an employee handbook or HR portal, and reference it briefly during onboarding.

A rep who already knows the rules before they ever need them is far less likely to feel like the company is making decisions about their paycheck in the moment, which matters for retention long after the leave itself ends.

Executive Capability Standard

What Good Looks Like

A leave-of-absence comp policy states quota relief, deal-credit splits by pipeline stage, coverage compensation, and the return ramp in writing before any rep needs it, so nobody is negotiating terms during an already stressful time.

Building The Capability (5-Stage Skill Ladder)

1. Learn:Pull every leave case from the past two years and note how quota and commission were actually handled, even informally, to see where the gaps are.
2. Do Manually:Draft a one-page leave policy covering the four steps above and have it reviewed by whoever runs payroll before the next leave request arrives.
3. Delegate:Assign a specific person, often in HR or RevOps, as the owner who applies the policy consistently rather than leaving it to each sales manager's judgment.
4. Automate:Configure leave tracking and prorated payroll adjustments in Rippling or Deel so quota relief calculates automatically instead of by hand each time.
5. Buy:Bring in an employment attorney to review the policy against your state or country's leave laws, especially the parts governing pay during protected leave.

How to Get Started

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Frequently Asked Questions

Does a rep on unpaid leave still earn commission on deals that close while they're out?

Usually yes, if the deal was already committed before the leave started and the credit split from your written policy applies. Unpaid leave affects base salary and benefits eligibility, not necessarily commission on work already done.

How do we handle a rep whose leave overlaps the end of a plan year?

Prorate both quota and any accelerator thresholds by the working days actually available in the plan year, and state clearly whether year-end bonuses or club qualification also get prorated. Decide this before the leave, not during the year-end close when the numbers are already in dispute.

Should the covering rep's stipend come out of the absent rep's commission?

No. Treat the coverage stipend as a separate line item the company pays, not a deduction from the absent rep's earnings. Deducting one rep's pay to fund another's stipend turns a coverage arrangement into a source of resentment between two people who should be on the same side.

About the numbers

This guide doesn't quote a sourced benchmark. Figures in it are estimates or general guidance, so check them against your own numbers.

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