Follow the below code:
update atten set atten.Att_UpdateBit='0' from Attendence atten
join EmployeeMaster Emp on (Emp.@ATReprs_Location=atten.fk_Emp_LocCode or Emp.@ATReprs_Location='All') and
(atten.fk_Emp_CatCode=Emp.@ATReprs_Catagory or Emp.@ATReprs_Catagory='All')
and(atten.fk_Emp_DepCode=Emp.@ATReprs_Department or Emp.@ATReprs_Department='All')
where Att_Date>'some date'