Employers can be found vicariously liable for alleged sexual assault that occurred between employees outside working hours but only where it was connected with their employment, according to a leading employment law expert. PwC is facing legal action claiming the accountancy firm is liable for the alleged rape of a graduate employee following after-work drinks. The graduate employee is suing PwC for damages over two alleged incidents of sexual assault by a colleague after work hours, court documents show. It includes one claim that the young woman was raped at her home after she went to pubs with colleagues following a meeting held at PwC’s office. A case management hearing was held in early April and the proceeding was referred for mediation. PwC is arguing it’s not liable because the alleged incidents were not connected to her or the alleged perpetrator’s role as a worker at the firm, and the graduate did not directly work with the accused. Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup Josh Bornstein, an employment lawyer at Maurice Blackburn who was not involved in the case and was speaking generally, said the question for the courts in...