dismissal / release
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dismissal
The termination of an employment relationship by the employer; being fired or laid off.
Wegen der schlechten Auftragslage drohen in der Firma weitere Entlassungen.
Because of the poor order situation, further layoffs are looming at the company.
release
The official release of a person from an institution such as a hospital, prison, or military service.
Nach seiner vollständigen Genesung steht die Entlassung aus dem Krankenhaus kurz bevor.
After his full recovery, his release from the hospital is imminent.
'Die Entlassung' (dismissal/release) is the noun corresponding to the verb 'entlassen' (to dismiss/release). The verb means 'to let someone go' (ent- + lassen). The noun describes the act of letting someone go from a job or an institution.
Der Chef musste leider drei Mitarbeiter entlassen.
Unfortunately, the boss had to lay off three employees.
You can tell which meaning is intended from the context. Words like 'Firma' (company), 'Mitarbeiter' (employee), or 'Job' (job) point to dismissal or termination. Words like 'Krankenhaus' (hospital), 'Gefängnis' (prison), or 'Militär' (military) point to release from an institution.
Nach der Fusion kam es zu vielen Entlassungen in der Verwaltung.
After the merger, there were many layoffs in administration.
When referring to release from an institution, the preposition 'aus' (from/out of) is almost always used with the dative. Typical phrases are 'die Entlassung aus dem Krankenhaus' (release from the hospital) or 'die Entlassung aus der Haft' (release from custody).
Seine Entlassung aus dem Krankenhaus ist für Freitag geplant.
His release from the hospital is planned for Friday.
farewell / departure
Both words can refer to the end of an activity. Entlassung explicitly makes clear that the employer has ended the employment relationship, while Abschied can present the process in a more neutral or personal way. When the termination is forced, Entlassung is the clear term.
Seine Entlassung aus dem Unternehmen kam für ihn völlig überraschend.
His dismissal from the company came as a complete surprise to him.
Sein Abschied aus dem Unternehmen wurde bei einem gemeinsamen Essen gefeiert.
His departure from the company was celebrated at a shared meal.
