LAWRENCE (AP) -- An unmarried couple fired from their jobs as teachers at a Massachusetts Roman Catholic school after revealing that they were expecting a baby have settled with the school a week after saying they planned to pursue legal action.

The Eagle-Tribune reports (http://bit.ly/1cLTyDk ) that Sean Houlihan and Natalie Ferland will receive their paychecks and health insurance for the rest of the school year after reaching an agreement with Lawrence Catholic Academy. Their records will reflect they resigned.

The couple is not married. Ferland is pregnant. They were fired last month after revealing their relationship and pregnancy.

The principal did not comment and referred questions to the Archdiocese of Boston. A spokesman there would not comment on personnel matters.

Their lawyer, Anthony DiFruscia, calls it a fair resolution for both sides.

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Information from: The Eagle-Tribune, http://www.eagletribune.com