Well, in theory.
I'm not really sure what TM does if, for example, the computer is asleep prior to the time of the next backup. TM may not wake up the computer and simply skip over the backup until the computer is awake whenever a scheduled backup comes up. But TM should not abort if the computer's sleep time arises during a backup. It should keep the computer awake until the backup finishes. This should be how any backup utility should work, but then you never know for sure until you test them. For me I would want to test any backup utility's behavior under circumstances that might compromise the backups insofar as I depend on the backup utility's reliability to produce usable backups without my having to be constantly in attendance.
I've tried TM several times since Leopard's release, and in general do not consider it a reliable backup alternative. I have had varied results with backups and restores, particularly with restores. TM seems to backup OK, but I haven't had any success doing a complete system restore. I'm also concerned by the many trouble reports appearing on these forums. There are just too many problems reported for me to consider TM truly reliable. However, that said there are a lot of users who seem to have no problems with TM. I guess I just sort of think a backup utility should really be bullet-proof because it's so important.