Sales Commission

What Is Sales Commission During Maternity Leave? A Complete Guide for Reps & HR [2026]

Adithya Krishnaswamy
19
min read
·
November 25, 2025
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TL;DR

Sales commission during maternity leave involves legal nuances, policy gaps, and practical planning, knowing your rights and your comp plan is essential.

  • Clarify how your commission is “earned” and what happens when you’re on leave

  • Understand quota pauses, residual payouts, and co-owned deals

  • Avoid clawbacks and miscommunication with clear, written expectations

  • Equip teams with tools like Everstage to automate fair and timely payouts

Introduction

Three months before her due date, Priya closed the biggest deal of her sales career. It was a multi-year SaaS contract that pushed her past quota, qualified her for accelerators, and guaranteed a sizeable commission, until things got blurry.

Her manager congratulated her but added, “Let’s check with HR on how commission works during maternity leave. It might be prorated.” The excitement turned into confusion. Would she still receive the payout? What if the client signed after she left? Would she lose her quarterly bonus?

If you’re a sales rep or HR leader navigating similar questions, this blog is for you. In many companies, sales commission during maternity leave exists in a grey zone, what counts as “earned,” who owns pipeline deals, and how quotas are treated vary widely.

In this guide, I’ll break down everything you need to know about how sales commissions are handled during maternity leave in 2026. Whether you're a rep preparing to take leave, an HR leader revisiting your policy, or a manager trying to do right by your team, you’ll find clear answers to your most pressing questions:

  • Am I still eligible for commissions while on leave?

  • What happens if a deal closes while I’m away?

  • Can my quota or bonus targets be adjusted?

  • What does the law actually say?

  • And how can we design fair, inclusive commission plans that support expecting parents?

Let’s demystify the policies, rights, and real-world practices that shape this critical (but often overlooked) part of the sales compensation conversation.

What Is Sales Commission During Maternity Leave?

Sales commission during maternity leave depends on what counts as “earned” pay under your contract and local employment law. If a deal closes before leave, the commission is typically owed, even if the payout happens later. 

Most companies prorate, pause, or exclude performance-based incentives unless policies state otherwise. Eligibility varies based on whether commission is guaranteed, discretionary, or ongoing. 

Legal protections exist for earned income but not for anticipated earnings. HR teams must define leave policies clearly to avoid disputes and ensure compliance with maternity-related pay regulations in 2026.

Still, this remains a grey area for many organizations. There’s often confusion around when a commission is considered “earned,” whether payouts should continue during leave, and how to handle performance-linked bonuses fairly.

One sales rep shared that she closed deals before going on maternity leave, but her company’s policy paid commissions one month after a deal closed, and the payouts were scheduled during her leave period. So, the company refused to pay because she was “not active” during the payout month, even though the deals were closed beforehand. She had to escalate the issue and prove the deals were closed before her leave. Only then did she receive the full commission.

This situation underscores why transparent policies matter. Employers should clearly define when commissions count as earned (deal closure vs. payout date), how payouts are handled if they fall during leave, and what happens to quota, pipeline, or bonus eligibility when someone returns from leave.

Am I Entitled to Sales Commission While on Maternity Leave?

Whether you're entitled to sales commission during maternity leave depends on three main factors: what your comp plan defines as “earned,” the timing of deal closure, and what’s contractually agreed upon.

1. How Commission Eligibility Is Typically Determined

Commission eligibility is usually tied to performance already achieved, not future expectations. If your contract or comp plan defines commission as “earned” only when a deal is closed and revenue is recognized, you're more likely to receive it, even if the payout happens while you're on leave.

The key distinction is between:

  • Earned commissions: Based on deals already closed before your leave.

  • Anticipated commissions: Tied to pipeline or forecasted revenue that may close after your leave starts.

Contract terms also matter. Some plans include clauses that require employees to be “active” at the time of payout, which can create grey areas unless clarified upfront.

2. Earned vs. Paid Commissions

Say you close a deal in June, go on leave in July, and your company pays out commissions monthly or quarterly. Are you still entitled to that payout?

Typically, yes, if the deal was closed before your leave and you met all conditions for earning the commission. But if your company requires active employment at the time of payout, you might face delays or denials unless you escalate.

Many companies clarify this in their sales compensation plans, outlining:

  • Whether commissions are earned at deal close or upon payment from the customer

  • Whether employees must be active at payout time

  • How parental leave affects ongoing variable pay

In most cases, commissions tied to deals closed before maternity leave should be paid, even if the payout happens during your leave. But the fine print matters. If your company’s policy ties commission payout to active employment status, you might need to clarify or escalate.

3. Deal Closure Timing and Impact

Timing plays a major role. Commissions are usually tied to stages in the sales cycle, prospect, committed, or closed-won. Only deals marked as closed-won before your leave are typically considered eligible for commission.

Another consideration is pipeline ownership. If you’ve built a pre-leave pipeline and a colleague closes those deals after you’re out, companies may reassign credit depending on how your handoff is managed. In some cases, the original rep (you) retains credit; in others, the payout is split or reallocated.

Clear documentation, proactive planning, and written policies help prevent misunderstandings. Always discuss commission treatment with HR or your manager before going on leave to protect your earnings.

Types of Commission Structures and Their Impact on Leave

Understanding how your commission structure works is key to knowing what you’ll earn during maternity leave. Let’s break down three common structures and how they typically play out:

1. One-Time vs. Residual Commissions

If your commission is one-time, you’re usually paid once after a deal closes, so long as you’ve met all eligibility criteria before going on leave, you should receive it.

With residual commissions (like in SaaS or insurance sales), earnings continue as long as the client account remains active. Whether these payouts continue during leave depends on company policy. 

Some employers pay residuals as long as you originally closed the deal; others pause payouts unless you’re actively working. It's critical to confirm if residuals are tied to ongoing employment status.

2. Accelerators, Bonuses & Draws

Accelerators (higher commission rates after hitting quota) are often tied to quarterly performance. If you're on leave during a quarter, you may miss the threshold to unlock those boosts, unless the company prorates targets.

Bonuses tied to team or annual performance may still be accessible if you're partially active during the measurement period.

Draws (advance commissions) get tricky. If you’re paid a draw before going on leave and don’t make up the difference in closed deals, some companies could claw it back, and others forgive it depending on leave policies.

3. Quarterly & Annual Targets

Your quota plays a major role. Some employers pause or prorate targets when you’re on leave, others do not, which can unfairly impact your on-target earnings (OTE).

If leave spans two quarters, the compounding effect can hurt your annual numbers, especially for those measured on full-year quotas. Understanding how leave affects your ramp and target expectations is essential to fair planning.

How Employers Commonly Handle Sales Commission During Maternity Leave

Companies handle commission during maternity leave in different ways, some offer full payouts, others prorate or pause them. Without clear policies, this can lead to confusion and inconsistent treatment. 

Here's how most employers approach it and what reps should expect.

1. 3 Common Approaches (with Pros & Cons)

Employers typically handle sales commissions during maternity leave in one of three ways. Each model has pros, cons, and major implications for retention and fairness:

Table 1

Model

How It Works

Pros

Risks / Cons

Full Pay

Commissions continue to be paid out during leave for deals closed before leave

Boosts morale, supports retention, and reflects earned performance

Can be seen as costly or inconsistent if not standardized

Pro-Rated Pay

Commission is paid based on time worked or deals closed before leave

Balances fairness and cost; often aligned with partial performance

May require complex tracking and can feel discouraging to employees

No Commission

No commission is paid during leave unless explicitly stated in policy

Clear-cut and simple to enforce

Can lead to legal risk, low morale, and attrition, especially for top performers

Made with HTML Tables

Which model supports retention?
Full pay is often linked to better retention, especially for women in high-performance roles. It signals long-term commitment from the company and reduces the risk of top talent leaving post-leave.

2. Internal Policies vs. Best Practices

Many companies don’t have a formal maternity commission policy. Why?

  • Lack of precedent: Sales comp plans are often written for business-as-usual, not life events.

  • Reliance on manager discretion: This leads to uneven treatment and potential legal issues.

  • Fear of cost implications: Some orgs avoid committing to payouts during leave without assessing long-term ROI.

Best practice:
Document a human-first, standardized policy that clearly defines how commissions are earned, when they’re paid, and how leave affects both. This reduces confusion, protects the company legally, and supports fair treatment across the board.

3. Example Scenarios from Different Sales Environments

How this plays out often depends on the sales motion:

  • High-Velocity Sales Teams: These teams close multiple deals daily or weekly. It’s usually easier to reassign leads temporarily and define commissions by deal close date. Prorating or continuing commissions is common, depending on policies.

  • Enterprise Sales Reps: With long deal cycles, the rep may have worked on a deal for months before it closes during leave. Without a clear policy, disputes arise over who gets credit, especially if someone else helps close the deal. Fair systems often split commission or credit the original effort if the pipeline is clearly owned.

  • Channel or Partner Sales: These involve shared accounts and revenue from third parties. Commission splits are already part of the model, so reassignments during leave are easier to navigate. However, clear attribution rules are still needed to protect fairness.

There's no one-size-fits-all model, but clarity and consistency matter more than perfection. Whether you’re a founder, HR lead, or RevOps manager, building transparent and equitable policies around commissions during maternity leave isn’t just good ethics, it’s good business.

What Happens to Your Quota, Pipeline & Targets?

Taking time off for maternity leave can raise big questions around quotas, deal ownership, and performance expectations. Without a clear plan, reps may return to unrealistic targets or confusion over who closed what. 

Here's how companies typically handle quotas, pipelines, and ramp-up post-leave.

1. How Quotas Are Treated During Leave

When a sales rep goes on maternity leave, companies usually take one of three approaches to quotas:

  • Freeze the quota for the duration of the leave, with no expectations or penalties.

  • Prorate the annual quota based on time worked during the year.

  • Reassign the full-year target across other team members.

Best practice: The most equitable approach is to pause the rep’s quota during leave and reset or realign it upon return. This avoids penalizing someone for taking protected time off and sets up a fair path back into performance metrics.

2. Who Gets Credit for In-Flight Deals?

A common grey area: you’ve worked a deal for months, and it closes while you’re on leave. Who gets the credit?

Companies handle this in a few different ways:

  • Co-ownership: Split credit between the rep on leave and the teammate who helped close it.

  • Full credit to the rep on leave: If the deal was nearly done and just needed a signature or minor follow-up.

  • Reassignment: If a new rep fully takes over and drives the deal to close.

Clear documentation of deal stage, rep involvement, and pipeline ownership before going on leave helps avoid disputes.

3. Post-Leave Ramp-Up Considerations

Returning to quota right away isn’t always realistic, especially in sales, where the pipeline may have gone cold. Companies that support long-term success offer a ramp-up period, giving reps time to rebuild momentum.

A common ramp structure looks like this:

  • Month 1 (30 days): Partial quota (e.g., 25–50%)

  • Month 2 (60 days): Moderate quota (e.g., 75%)

  • Month 3 (90 days): Full quota

This allows the rep to gradually re-engage prospects, rebuild their pipeline, and return to peak performance without added pressure.

Quota, pipeline, and target expectations during and after leave should be clearly defined in your compensation policy. Thoughtful planning here isn't just about fairness, it’s about setting returning parents up for success.

How to Plan Your Commission Strategy Before Taking Maternity Leave

Whether you're the sales rep preparing to go on leave or the manager supporting them, a proactive approach to planning commissions can save time, reduce friction, and ensure fair outcomes. Here’s how both sides can prepare.

1. For Sales Reps: What to Clarify Ahead of Time

Before going on leave, make sure you have clarity on how your commissions will be handled:

  • Request a written explanation of your compensation policy. Don’t rely on verbal promises or assumptions. Ask HR or your manager to confirm how commissions, bonuses, and targets will be treated during your leave.

  • List out any commissions you expect to earn during your leave. Create a clear record of deals closed, expected payouts, and the timeline, especially if the payout will happen while you're on leave.

  • Understand who will take over your deals and pipeline. Align with your manager on transition plans: Will a colleague take over your accounts? Will ownership be split? This will help you avoid disputes later over credit or payout eligibility.

Getting ahead of these details can save you from payout delays or confusion while you’re away. The clearer your documentation and alignment, the easier it will be to return without financial surprises.

2. For Sales Managers & HR Teams

From the employer’s side, the key is to plan ahead to ensure fairness, transparency, and continuity:

  • Forecast commissions the rep is eligible for during leave. Run a payout projection for any deals already closed or likely to close before the rep goes on leave.

  • Document who will cover the rep’s responsibilities. Whether it’s one backup rep or a shared team effort, make sure responsibilities, lead ownership, and credit-sharing rules are clear.

  • Communicate early and often. Don’t wait until just before the leave begins. Set up a planning discussion at least 4–6 weeks in advance to finalize all compensation-related details.

A well-documented plan benefits everyone, ensuring compliance, avoiding disputes, and supporting employee trust during a critical time. Early coordination sets the tone for a smoother leave and return.

3. Key Conversations to Have Before Leave

To avoid confusion or surprises, make sure the following are discussed and agreed upon:

  • Will quotas be paused, prorated, or reassigned? This affects both commission eligibility and performance reviews.

  • What happens to accelerators or milestone-based bonuses? If the rep was close to hitting a big accelerator, clarify whether that’s still within reach or paused until return.

  • How will targets be adjusted after return? Agree on a ramp-up plan or reset period to help the rep ease back into their sales role without being penalized for lost time.

Don’t leave these discussions until the last minute. Clarifying quotas, accelerators, and ramp timelines in advance helps set realistic expectations and creates a fair, human-first transition plan.

How to Build Fair & Inclusive Compensation Plans for Parental Leave

Designing a fair sales compensation plan isn’t just about targets and payouts, it’s about supporting people through life events without penalizing performance. Maternity leave is one such moment where unclear policies can lead to lost commissions, disputes, or even attrition.

In this section, we’ll cover flexible models, policy language, and tools that help companies do better, by design.

1. Flexible Commission Models

One of the best ways to support fairness during maternity (or any parental) leave is by designing commission structures that aren’t rigid. Flexible compensation plans allow room to adjust without penalizing reps for taking time off.

You can do this by:

  • Adding clear payout policies for earned vs. pending commissions

  • Creating options for deal splits or co-ownership while someone is away

  • Designing quotas that allow for temporary pauses or gradual ramp-ups

The goal is to avoid a one-size-fits-all model that disproportionately impacts reps with long deal cycles or year-end targets. Flexibility improves retention and promotes equity across the sales org.

2. Sample Commission Policy Language

Many companies struggle to define what “fair” actually looks like in writing. That’s where a clearly worded policy can help. It ensures consistency and avoids confusion during HR transitions, manager handovers, or legal reviews.

Here’s a sample clause you can adapt:

“Employees on maternity leave will receive all commissions earned prior to the start of leave, regardless of the payout date. Quotas and performance targets will be paused during leave and reviewed for reset upon return, with appropriate ramp-up consideration.”

Simple, fair, and future-ready. Even a short, written clause can go a long way in protecting employees and avoiding disputes. Put it in writing, and make sure reps know where to find it.

3. Tools to Track & Automate Fair Payouts

Manually tracking deal closure dates, payout timelines, and leave periods often lead to errors, especially across multiple reps or regions. That’s where automation tools can play a key role.

Platforms like Everstage allow you to:

  • Flag eligible commissions earned before leave

  • Automate triggers for payout, even when reps are inactive

  • Set up post-leave ramp quotas to restart fairly

You can integrate these with your CRM to ensure sales credit is logged accurately, even if deal ownership shifts mid-cycle.

Tech won’t fix unclear policies, but it can make fair policies easier to apply. Invest in tools that keep compensation transparent, consistent, and bias-free.

Legal Requirements for Sales Commission During Maternity Leave

Sales reps and employers often ask: “Are commissions legally required to be paid during maternity leave?” The answer hinges on how your commission structure is defined and what qualifies as earned income under federal and state law.

Let’s break it down:

1. FMLA and Commission Pay: What the Law Says

The Family and Medical Leave Act (FMLA) provides eligible employees with 12 weeks of job-protected, unpaid leave for family or medical reasons, including childbirth. But here’s the catch:

  • FMLA doesn’t require employers to pay salaries or commissions during leave.

  • However, it does protect your right to any earnings you accrued before leave began.

Example: If you closed a deal before starting maternity leave, your employer must still pay that commission, even if the payout is scheduled later.

So while FMLA doesn’t entitle you to new commissions earned during leave, it does protect previously earned income and your position and comp structure upon return.

2. Statutory & State-Level Maternity Laws

Beyond FMLA, some state-level laws offer additional clarity and protections:

  • California and New York, for instance, have Paid Family Leave (PFL) programs that provide partial wage replacement, which may include base pay and some variable comp depending on the plan design.

  • These programs do not override commission terms, but they ensure broader wage support and anti-discrimination protections during leave.

If you're outside the U.S., statutory maternity leave laws in countries like the UK, Canada, or Australia may mandate specific treatment of commissions, particularly if they're a regular part of pay.

3. Earned vs. Anticipated Commissions

From a legal standpoint, a key factor is whether the commission is “earned” or “anticipated.”

  • Earned commissions (i.e., the work is done, the deal is closed) must be paid, even if the payout happens during your leave.

  • Anticipated commissions (e.g., pipeline deals, open negotiations) are not legally required to be paid unless your contract says otherwise.

Tip for reps: Review your commission agreement. If payout terms are tied to deal closure, delivery, or payment, document what’s been earned before your leave.

4. Anti-Discrimination Laws

Under the Pregnancy Discrimination Act (PDA) and Title VII of the Civil Rights Act, it's illegal to treat an employee differently because of pregnancy or maternity leave.

This means:

  • You can’t be denied commissions you would otherwise receive

  • You must be treated equally to your peers who are not on leave

Failing to pay earned commissions or rerouting them unfairly can expose companies to legal claims, especially if the comp policy lacks clarity.

5. What Employers Should Do

To stay compliant and fair:

  • Clearly define what constitutes earned commissions in your comp plan.

  • Apply consistent rules to all types of leave (maternity, paternity, medical).

  • Consult with legal counsel when updating comp policies involving leave scenarios.

You’re not entitled to commissions for work not yet done during maternity leave. But you are legally owed any commissions you've already earned before the leave starts. And employers who withhold them may face serious legal consequences.

Conclusion: Aligning Policy, People, and Performance

Designing sales compensation plans that account for parental leave isn’t just a legal necessity, it’s a leadership opportunity.

When you proactively define how quotas, commissions, and ramps are handled during leave, you create a system built on clarity and fairness. That clarity builds trust. And trust builds retention, loyalty, and performance, especially in high-stakes, high-output sales environments.

As you review your compensation policies, ask yourself:

  • Is our commission structure inclusive of life events like maternity or parental leave?

  • Have we documented what “earned” means and who gets credit for in-flight deals?

  • Are our managers and reps aligned on what to expect before, during, and after leave?

By embedding these conversations into your compensation design, you empower your people to thrive, at work and at home.

Final tip: Don’t wait for questions to arise. Proactively document and communicate your leave-related comp policies today. Your future team will thank you.

Need help tracking commissions fairly during parental leave?

Everstage helps sales teams automate commission tracking, define payout rules clearly, and ensure every rep gets what they’ve earned, no matter when they’re out on leave.

Book a demo with Everstage to see how you can build inclusive, compliant comp plans without the manual stress.

Frequently Asked Questions

Does sales commission continue during maternity leave?

Sales commission may continue during maternity leave if it was earned before the leave began. If a deal was closed prior to the start of leave, the commission is typically still owed. However, commissions based on work not yet completed are usually not paid unless specified in the employment contract.

Am I entitled to commission while on maternity leave?

You are entitled to earned commissions, those tied to deals closed before your leave. You are not legally entitled to commissions for work that occurs during leave unless your company’s policy or contract allows for it. Legal entitlement varies by country and contract terms.

How do companies calculate commissions during maternity leave?

Companies calculate commissions based on whether the earnings were accrued before maternity leave. Some prorate commissions, while others pause payouts or exclude variable pay unless earned. The approach depends on internal HR policy and employment contracts.

Is it legal to withhold sales commission during maternity leave?

It is not legal to withhold commissions that were earned before maternity leave began. However, it is legal to withhold commissions not yet earned, unless a contract specifies otherwise. Laws like the FMLA and anti-discrimination statutes protect earned income.

What’s the difference between statutory and contractual commission pay during leave?

Statutory pay refers to legally required maternity benefits, which typically exclude commission. Contractual pay includes terms set by the employer, which may guarantee continued or prorated commission payouts. Contractual terms can expand beyond statutory requirements.

Can I negotiate commission terms before going on maternity leave?

Yes, it is recommended to negotiate and document your commission terms before maternity leave. You should clarify eligibility, quota adjustments, pipeline ownership, and payout schedules with HR. Written confirmation helps avoid disputes and ensures transparency.

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