Appraisal In Notice Period??

Hi,
You can do a formal appraisal with no increments. Also, if the salary break has an year end performance linked bonus, the same can be released as per the performance. This would make it fair for the employee.
Regards,
Ayush Pal

We must remember that salary increments are given to retain an employee so that he manages the increased cost of living while continuing to work with you. Similarly, a bonus is given for past performance.
Please try to convince your management that you want to pay both increment and bonus for an exiting employee and they will give you the above logic. The concept working with employer brand image in mind exists with very few organizations. Management will tell you that the monies can be used in hiring and training a replacement.
In this particular case, the personal reason is further studies - which is a planned activity. One doesn't decide to do further studies overnight. Once a decision is made, then research into proper institutes, courses, costs etc follows, post which a final decision is made.
So I agree with Ayush - do his appraisal, calculate and release his bonus. It is fair to both employer and employee, which is the line HR should always walk.

Thanks for all your valuable feedback. To make it clear, I had included the employee for the bonus pay but not for the increment. But after going through the responses I have included her in the appraisal process this year. The increment and bonus will be paid as an arrears by next month. But its always good to treat employees this way when they leave the organisation.
Thanks for guidance.