Yes, the Soul or the spirit does return to Earth after death, until it is surrounded by karma.
After death happens, why does the Soul return to Earth?
The Soul is eternal, it never takes birth nor does it die. When the Soul leaves the physical body, life ends and the body dies. After leaving one body, the Soul along with ego and the other aspects, i.e. your karma, moves on to form another physical body, which is called rebirth.

The life form of our next lifetime, and also the suffering that we undergo during the next lifetime, depends upon the karmas (deeds) bound in our current life.
When the Soul returns to Earth, one is reborn in one of the following four lifeforms:

Human
One is reborn back into human form if during the life:
One has an obliging nature towards people he meets.
One does not intend taking away anything that belongs to others, by lying, cheating, deceit or any other foul means.
One treats others like they would want to be treated themselves. Before taking any action through their mind, speech or deeds towards others, they will have a thought, ‘What would it feel like if someone treated me like this or spoke to me in such a way or caused me any physical pain?’
Throughout their life, they have been decent, humane and lived honourably.

Animal Kingdom
One secures birth in animal life-form if:

• One is constantly consumed in thoughts of taking away things that do not belong to them, or cheating others, being deceitful, stealing, lying, adultery, being cunning, earning money by swindling, etc.

• One misuses their intellect to cause others harm, pain and suffering.

Hell
Those who exhibit the following traits will have to be born into hell:
•People who merely for their own pleasure, enjoy giving pain to others.
•Without any reason whatsoever, they destroy the homes and lives of others and take pleasure when others suffer, without any sense of remorse.
•Most of their time is consumed in evil thoughts of how to cause unimaginable pain to people.
•They engage in killing human beings or in other forms of wanton violence.

Celestial
One who displays the following traits throughout their lifespan secures future birth in a celestial realm:
They live their entire life for the sole purpose of the welfare and happiness of others.
They never give thought to one’s own happiness.
They bequeath their own comforts and happiness for the benefit of others.

They have superhuman qualities such as if someone was to cause them hurt, they would not react and remain benevolent.
Liberation - Moksha
The Soul, by its inherent nature, is moving towards ultimate liberation.

Owing to ignorance of ‘I am pure Soul’, one believes, ‘I am the body.’ This is called ego. The ego binds karmas, good or bad, due to which the Soul has to return to Earth, so that the ego can suffer the fruits of its bound karmas. This is why the Soul has to wander in the perpetual cycles of birth and death.

At the time of death, while the last breath is taking place, a “balance sheet” of our deeds (karma) throughout our life is created. This “balance sheet” determines which of the four lifeforms one will be reborn into.

If humans do not charge either good or bad karmas and suffer all the previously charged karmas (discharge) without any attachment and abhorrence, they can attain liberation.
Karmas essentially get charged due to our ignorance of the Self i.e. for not really knowing ‘Who am I’. And liberation can only be achieved when one acquires from the Enlightened being (Gnani), Self-realisation i.e. realises ‘I am Pure Soul’.

It is a great thing to attain human birth, for it is only in this form that we can be liberated from all suffering, misery and perpetual cycles of births and deaths. But this is provided we attain Self-realisation in the human birth.

To know more: https://www.dadabhagwan.org/self-realization/

Author's Bio: 

Ambalal M. Patel was a civil contractor by profession. In June 1958, spontaneous Self-Realization occurred within Ambalal M. Patel. From this point on, Ambalal became a Gnani Purush, and the Lord that manifest within him became known as Dada Bhagwan. A Gnani Purush is One who has realized the Self and is able help others do the same. Param Pujya Dada Bhagwan used to go from town to town and country-to-country to give satsang (spiritual discourse) and impart the knowledge of the Self, as well as knowledge of harmonious worldly interactions to everyone who came to meet him. This spiritual science, known as Akram Vignan, is the step-less path to Self-realization.