Yes, DISPLACE is a Scrabble word!

Letter values in Scrabble US: D 2, I 1, S 1, P 3, L 1, A 1, C 3, E 1.

Is it a valid word?

DISPLACE is a valid word in the official Scrabble dictionary (US), the UK Scrabble Dictionary and Words with Friends (ENABLE).

cause to move, usually with force or pressure
take the place of or have precedence over
terminate the employment of; discharge from an office or position
cause to move or shift into a new position or place, both in a concrete and in an abstract sense

Also: give notice, give the axe, send away, force out, give the sack.