Yes, they work. We use them on aircraft. The oil that is blown out the vent is collected in the canister and it drips back into the engine. There are 3 ports on the canister. One to the vent, one to exhaust the air and one small one to the drain. It usually drains back into a port on the accessory case. Sometimes if there is no port on the accessory case people will make a drain back port on a valve cover. Then again you could just use a jug to collect the blow by oil.
You may not want to put it back into the engine. Along with the oil is usually moisture that is cooked off and blown out the vent. They were necessary on aircraft with wet vacuum pumps to put the oil from the vacuum pump back into the engine.