Unfortunately that's the system. It doesn't make it moral or ethical. You have countless people taking advantage be it self-employed cash only businesses, off shore accounting, various countries offer tax breaks to individuals and businesses.In this lady's case got nothing against her personally she's just taking advantage of the system encouraging her to pop them out. But She gets to do exactly the same work as a UK resident employee and pay much less tax as a result. But it goes to the unfairness especially as jobs are getting scarcer here (see hospitality figures) and it doesn't really matter where you're doing it apart from for tax purposes.
Take Dr Martins boots, they decimated employment in Irthlingborough because it was cheaper to move everything abroad.
Without knowing the ladies personal circumstances the amount of anti-semitism in the UK. I could hardly blame her for going abroad if the employer allows it.