There are a few cases associated with it. Granting of medical leave and payment of salary and/or reimbursement of medical bills are based on the medical leave policy of the company. Since you have already approved the leave and paid the salary, I do not doubt if you do not have such a policy, but my apprehension is all about the number of days an employee can avail such leave. The amount of medical bill which can be reimbursed during a year and the number of days of medical leave that can be permitted should be proportionate to the months he has worked in the current year. But this will not be applicable in case the employee has been bedridden after having met with an accident while on duty. In such a case, the employer is under a legal obligation to meet the expenses and pay salary until he is fit to resume work. In the case of an employee who is covered by ESI, naturally, the ESI Corporation will bear the responsibility.
If the employee has already exceeded the medical leave limit and medical reimbursement limit, then you can stop granting further leave and reimbursements and ask him to resume duty forthwith. If you keep silent, that will be taken for granted, and the employee will not turn up even after he becomes fit. Therefore, before initiating any action for termination and recovering the amount paid, please find the real picture and then take a call. Without giving him an opportunity to be heard, you should not take any action. Therefore, you may send a letter to him and ask him to report the present status to begin with, and if he does not reply to it nor report to duty, then you can initiate action against him.
Madhu.T.K