The PFEW was originally established by the Police Act 1919 as an alternative system, which would serve to represent staff, and where disputes could be resolved through arbitration so long as the government (as employer) continued to bargain in good faith.

This is technically an incorrect assumption, as it was set up specifically by the Government of the day not to be a trade union; however in reality the Federation does function in a similar manner.

It negotiates with key decision makers including the Government and chief constables [clarification needed] on all matters concerning its membership's pay, allowances, hour of duty, annual leave, pensions and other conditions of service.

However, unlike a union, the Federation is controlled entirely by serving police officers, has no political affiliations, and has no powers to call a strike.

[7] That is not to say the Federation remains aloof from applying political pressure, as shown by the successful 1976 ballot regarding the right to strike[4] and the 2012/13 "Plebgate" affair.

It also performs many other functions, such as training, administering legal representation and liaising with government and other national bodies on policy and legislative matters.