If you opted to purchase the freedom of the Nervous Man in Hunt Down a Fugitive instead of handing him over to the lord then he will join your party. Speaking to the Nervous Man while he is a member of your party will give you the option to suggest "You could always return home.". While he is initially reluctant due to the distance, if you agree to escort him then he will remain within your party until the next time you visit that village.
If the Nervous Man dies during combat at any time on the way to the village then the quest will fail. Unless heavily pressed this shouldn't be that easy as the Nervous Man is actually quite proficient in combat.
Upon the first return to the man's home village a conversation will trigger where he thanks you for bringing him home and happily leaves the party. As you've fulfilled your oath to the village elder at the beginning of the previous quest you receive a substantial improvement in relation with the village as well as another boost of honor.